The venture capital fund Kamay Ventures announced a new round of investment in Mexican startup RetryPay. The fintech is developing a platform that brings together multiple payment processors and alternative payment methods, so that any e-commerce can optimize the rates for accepting payments and decreasing rejections.
RetryPay has yet to launch its solution in the market, but it already has partners such as VTEX, Shopify and Nuvemshop and more than 40 companies on the waiting list. Currently, the company is beta testing its platform.
The startup aims to accelerate its growth by offering support to more e-commerce platforms, more processors and connected payment gateways, and to increase its support for mobile, as well as its commercial presence in 7 countries: Mexico, Colombia, Ecuador, Peru, Chile, Argentina and Brazil.
“We are delighted to announce this new investment in RetryPay. For Kamay Ventures, it means promoting the development of a key solution in the growing digital commerce industry. The startup seeks to optimize a fundamental step in the payment systems process, reducing the number of rejected transactions and integrating and optimizing alternative payment methods”, highlights managing partner of Kamay Ventures, Gabriela Ruggeri.
Kamay Ventures is a corporate venture capital fund managed by Overboost. It has Grupo Arcor SAIC and Coca-Cola Latin America among its partner investors. The VC plans to fund 10 startups every year until 2024 with an average investment of $300,000 per project.
According to RetryPay, in Latin America, the e-commerce market grew by 81% in 2020, reaching a turnover of $83,000 million. In this scenario, companies in the region increased by 31.5% the adoption of payment solutions during the past year, as there was an increase in the rates of rejections during the first year of confinement by COVID-19.
The online stores face bills of between 20% and up to 40% in declining payments and 72% of these orders are carried out by legitimate customers. Only in 2020, $600,000 million were lost because of this issue.
“RetryPay was born as a solution to a clear problem: rejection fees in transactions by payment gateways, but it has evolved to offer a series of strategic connections from different post-checkout partners. We include payment gateways, and also alternative payment methods of all the local and regional innovators fintech, including anti-fraud tools, crypto, BNPL and insurance, among others”, explains RetryPay founder and CEO, Mauricio Madrigal.