Kipp acquired by LTVCo-led investor group for US push

This acquisition is a signal to retailers that the technology used to combat false credit card declines is about to get more aggressive in the U.S. market. Kipp operates a platform that acts as a real-time bridge between merchants and card issuers. Currently, many legitimate transactions are declined because banks use overly cautious risk algorithms. This costs you sales and frustrates customers at the most critical point of the journey: the checkout. Kipp’s technology allows merchants to share the risk with the bank in real-time. If a transaction looks risky to the bank but the merchant wants to proceed, the merchant can essentially offer to pay a small premium or share the loss if it turns out to be fraudulent. This collaboration encourages banks to hit the 'approve' button more often. For high-ticket retailers or those with tight margins, this means fewer lost sales and higher conversion rates. As the new investor group, LTVCo, pushes Kipp into the American market, you should expect to see these 'joint-decisioning' tools integrated into more payment gateways and POS systems soon. It is a shift away from the traditional siloed approach where the bank has the final, often automated, say on whether you get paid.

Source: Finextra — Lending

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