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Acquired

Providing a multi-acquiring strategy and data-driven payments approach for Abound

Through Acquired's data-rich platform, Abound has optimised their efficiency and enhanced their customers' payments experience.

Acquired · 23 April 2024 · Updated 24 May 2024

Abound

Abound distinguishes itself in the lending landscape by using ‘financial x-rays’ through AISP Open Banking. Its proprietary AI software, Render, analyses live financial data to understand each applicant’s unique situation and what they can truly afford to borrow, making credit decisions fairer and affordable credit more accessible.

Abound chose Acquired for our ability to meet complex payment needs and our consultative approach. With insight into the entire customer journey through Acquired’s data-rich platform, Abound has optimised efficiency and enhanced the customer experience.

01 The challenge

One acquirer meant one point of failure

Despite using innovative affordability tools, Abound faced challenges optimising its payment processing. Relying on a single acquirer limited approval options and payment flexibility, and introduced risk.

With every transaction routed through one acquiring source, any downtime or issue at the acquirer could interrupt payments, with no way to reroute transactions to an alternative.

Abound also needed deeper insight into its transactions to keep improving its payment processes and collection success rates.

02 The solution

Multiple acquirers, routed by performance

Abound adopted Acquired’s next-generation platform, combining a multi-acquiring strategy with a data-driven approach to payments. Diversifying across multiple acquirers delivered three key benefits.

Enhanced payment success rates

Multiple acquirers improved payment success rates for borrowers. As fig. 1 shows, relying on Acquirer B alone in September and October could have meant up to 6% lower collection success. Instead, Abound could see which acquirer performed best each month and reroute transactions accordingly.

Increased flexibility

Routing through multiple acquirers gives Abound the flexibility to adapt to changing market dynamics and customer preferences.

Risk mitigation

Diversifying payment channels safeguards Abound against disruption from any single acquirer.

Fig. 1
Comparison of Collection Success Rates by Acquirer
Acquirer August success %September success %October success %
Acquirer A 82.36% 80.51% (higher success rate that month) 80.99% (higher success rate that month)
Acquirer B 82.97% (higher success rate that month) 76.05% 77.47%
Source: The Acquired.com Hub Higher success rate that month

Data-driven decisions

The Acquired Hub, our interactive analytics and reconciliation platform, brings all payment activity together so businesses can review, measure and control their payment landscape. For Abound, this meant a clear view of collection success rates and the means to improve them.

03 The result

Stronger collections, same mission

Abound’s story shows the value of a multi-acquiring, data-driven strategy for lenders. By integrating multiple acquirers and using each one’s strengths, Abound optimised success rates and accommodated diverse payment types, while upholding its mission of fairer credit decisions and wider access to affordable credit.

Greater visibility of decline data now informs better decision-making, helping Abound continue to improve collection success rates.

About Abound

Founded in 2020 by a team of credit experts, Abound uses Open Banking and AI to offer borrowers more affordable loans than traditional lenders. It is the consumer arm of Fintern Ltd, which also owns Render, and is authorised and regulated by the Financial Conduct Authority.

www.getabound.com

Interested to learn more about how Acquired and our partnerships can improve your payment processes?

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