2023-11-10 15:11:03
According to the report “Strategies and Expectations for Black Friday 2023”, released in September by Neotrust, the date marked by aggressive promotions is expected to register a growth of 12% this year compared to 2022. Considering only e-commerce, the research projects that Black Friday will generate R$6.92 billion. However, this value might be much higher if retail operations were more efficient. This is the premise that underpins the work of DEUNA, a company founded in Silicon Valley that begins operating in Brazil. A company “one-click checkout” is capable of increasing sales conversion in digital stores by up to 40% and reducing the number of denied payments by around 50%. As a result, it offers an increase of up to 5% in retailers’ revenue.
Between 2021 and 2022, DEUNA carried out the largest fundraising in a single round of investments in the sector (USD 38 million), which is enabling the acceleration of the company’s growth in Mexico, Colombia, Ecuador, Chile and also its entry into Brazil. The company chose executive Fabio Di Santoro for the position of General Manager, responsible for operations in Brazil.
DEUNA debuts in our country with good prospects. It is estimated that Brazilian e-commerce retail will reach, in 2023, an annual revenue level of around R$320 billion. According to Di Santoro, the company is betting on its ability to generate, through its solutions, between 3% and 5% of additional revenue for retailers, percentages that represent an excellent opportunity cost for the sector. The executive estimates that up to R$15 billion might be added to retail revenue just through more efficient payments.
Also according to Di Santoro, DEUNA acts directly on these pain points in the Brazilian market, developing payment infrastructure and fraud prevention solutions, which allow optimized checkout experiences for online merchants and buyers. The company supports digital companies and businesses in Latin America to maximize their results on digital channels (mobile, web, marketplace, e-commerce) with a focus on converting shopping carts at checkout and increasing the approval rate of transactions of payment.
This is because the solution easily integrates with the main e-commerce platforms and allows the implementation of customizable payment flows, which give the merchant tools to handle each transaction in a unique way. The executive comments that DEUNA does not compete with gateway providers, acquirers, sub-acquirers, anti-fraud platforms and systems, brands and issuers. The company positions itself as an orchestrating technological platform, acting in an agnostic manner and as a partner of these different actors in the payments ecosystem. In practice, it connects merchants through a single integration to an ecosystem of more than 80 payment and anti-fraud providers and methods.
Partnerships and new businesses
DEUNA has an important partnership with one of the largest full commerce solutions platforms in Latin America, with a dominant presence in Brazil, which should boost its growth in the country. Among the customers with advanced treatments, there are retail and insurance giants. This last sector comprises more than 30 large companies with a considerable percentage of their revenue coming from online channels.
Di Santoro states that the company hopes to soon announce the first partnerships in Brazil, with high expectations for growth in the country and many investments planned for 2024.
Brazil represents a major challenge in the online payment approval scenario
According to a recent study, carried out by an anti-fraud solutions provider, a strategic partner of DEUNA, the country recorded two million fraud attempts from January to August this year. In terms of values, the total reaches R$2.5 billion.
DEUNA seeks to reduce this problem with routing alternatives and identification of error codes, which allows intelligent orchestration of the “retry” process for unapproved transactions. The solution also offers sophisticated fraud detection systems, without putting legitimate transactions at risk, keeping the risk of chargeback (a charge disputed by the cardholder) to a minimum.
Scams, points out the company’s general manager in Brazil, are one of the most sensitive points in e-commerce and the country has one of the highest rates in the world. He points out that there are approximately 2 million fraudulent transactions per year, which generate losses of around R$6 billion. In the first quarter of this year alone, according to industry data, 3.9% of e-commerce revenue was affected by fraud.
Other points: in Brazil, consumers pay with credit cards 60% of the time; around 30% of these purchases are made using third-party cards. What’s more: Brazilians tend to use multiple cards and payment methods. DEUNA, therefore, has identification solutions so that these transactions can be analyzed and approved with complete security.
Para a Black Friday 2023, the expectation is that credit card purchases will have a high representationaround 60% in the period with this payment method, according to the Consumer Panorama 2023. DEUNA customers, according to Di Santoro, are able to recover between 5 and 15% of their lost transactions, increasing their approval rate.
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