Insights from Yuno’s COO on Infrastructure & Growth
Hey Payments Fanatic!
In a revealing Spotlight interview between Arthur Bedel 💳 ♻️ and Julián Núñez, Yuno's Co-founder and COO shares critical insights about payment infrastructure development. The discussion reveals that maintaining in-house payment solutions - such as Rappi's 200-person payment team - often diverts substantial resources from core business operations.
The numbers tell a compelling story: merchants implementing multi-provider strategies and optimized payment routing have seen conversion rates increase by up to 25%. Even more revealing is how companies historically tied to single payment providers for 15-20 years have reduced their processing fees from 10-15% to under 2% simply by adopting more strategic payment approaches.
Most significantly, Nuñez highlights a common misconception in the industry - the focus on processing fees over acceptance rates. The data shows that accepting a transaction at a slightly higher processing fee often yields better returns than losing the sale completely due to declined transactions.
Watch the full interview here:
On a personal note, thank you for an incredible year of news, daily readership, and support! As I take a two-week break to enjoy the holidays with family, I wish you a Merry Christmas and a Happy New Year!
Read more global Payments industry updates below 👇 and I'll be back in January!
Cheers,
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INSIGHTS
📊 How Instant Ad Hoc Payments Benefit Digital-First SMBs, by Ingo payments. This report is based on a survey of 503 SMB receivers generating less than $25 million in annual revenue across the United States. It also explores SMBs’ growing adoption of instant methods when receiving ad hoc payments. Download here
PAYMENTS NEWS
🇺🇸 Meet and experience the first commerce aware AI to transform data into unstoppable growth in real time. Request your invitation here
🇧🇷 Central Bank of Brazil approves PayRetailers’ acquisition of Transfeera. The acquisition will enable PayRetailers to gain direct access to Pix, a popular payment system in Brazil that lets users instantly transfer money in Brazilian real, strengthening its regulatory and risk management structure, and expanding its opportunities in Open Banking.
“Transfeera stands out as a technological and innovative powerhouse in Brazil, aligned with the best practices in risk management and security, being an entity supervised by the Central Bank of Brazil,” says Juan Pablo Jutgla, founder and CEO of PayRetailers. Click here to learn more
🇨🇳 UnionPay simplifies payments for visitors to mainland China. UnionPay International has partnered with Weixin Pay to enable UnionPay wallet users to scan Weixin Pay codes in mainland China. Users will be allowed to link UnionPay cards to wallets and pay via Weixin Pay codes in mainland China, with automatic currency conversion to RMB.
🇪🇸 Kloutit raises €540K. The company specializing in AI-driven focuses on chargeback management and prevention for businesses. Kloutit recovered €150,000 for clients within two months, ensuring long-term profitability. Continue reading
🇬🇧 Parmenion integrates NatWest's Payit for open banking payments. The new functionality reduces the time it takes for their money to be invested on the Parmenion platform and makes the process of clients sending money to the platform more secure. Continue reading
🇺🇸 US Faster Payments Council releases International Fraud Mitigation report. The new resource provides an in-depth analysis of global strategies to combat fraud in faster payments, offering valuable insights for enhancing fraud mitigation in the U.S. payments landscape.
🇨🇦 Worldline launches FlexPricing. This feature enables percentage fees on bank transfers, custom fees, and simplified billing. Ideal for ISVs in payments, payroll, or subscriptions, it can triple revenue sharing. It also empowers partners to enhance their revenue models and optimize the billing experience for their merchants.
🇫🇮 Enfuce and Alisa Bank launch SME credit card in Finland. This collaboration is set to disrupt the SME banking landscape by offering a seamless, digital-first solution that meets the growing demand for flexible, cost-effective financial tools in the modern business world.
🇧🇬 Bulgarian market joins TIPS. The move supports Bulgaria’s plan to join the euro area. Individuals and businesses with accounts at the Bulgarian banks that have joined TIPS can now instantly transfer payments in euro to any other TIPS participant. Read more
🇳🇿 NZ Commerce Commission cuts local companies' fees for Visa, Mastercard payments. The proposal intends to reduce New Zealand businesses' payment fees by NZ$260 million annually. The decision is part of the Commission's broader effort to reduce payment costs for both businesses and consumers.
GOLDEN NUGGET
Hard vs. Soft Card Declines.
Here is what we need to know:
Key insights:
- Hard Declines: Permanent rejections due to stolen cards, closed accounts, or fraud - no retry possible
Hard declines mean game over:
- Lost/stolen cards 🚫
- Closed accounts
- Expired cards
- Suspected fraud
How to fix it?
- Verify cards thoroughly at checkout
- Send proactive expiration reminders
- Choose reliable payment channels
- Offer alternative payment methods instantly
- Soft Declines: Temporary issues like insufficient funds or network glitches - can be resolved
Soft declines can be fixed:
- Insufficient funds
- Invalid card details
- Authentication issues
- Technical glitches
How to do it?
- Inform customers immediately with clear reasons and solutions
- Use payment cascading with backup channels
- Strategic retry timing for issues like insufficient funds
The key takeaway: Understanding these differences helps businesses keep revenue flowing by knowing exactly when to retry payments and when to request alternative payment methods.
Source: Spell
I highly recommend the complete deep dive article by Jevgenijs Novickis for more interesting info on this topic.
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