Company Overview
Kosmimata, a brand synonymous with exquisitely handcrafted jewelry, had a vision: to share their unique creations with jewelry lovers around the world. As their reputation for unmatched craftsmanship began to spread internationally, Kosmimata faced a daunting challenge: ensuring that customers across the globe could purchase their exclusive pieces without running into payment obstacles or exorbitant fees.
Challenge
Expanding into new international markets brought several significant challenges for Kosmimata:
- High fraud and payment decline rates: Having a higher than average ticket size, Kosmimata were challenged with high fraud and chargeback rates. As Kosmimata attempted to curb the issue using 3rd party tools, legitimate customers from different countries ended up facing frustrating declines at checkout.
- Brand Reputation at Risk: Payment issues were starting to hurt customer trust. After surveying their close group of clients, 30% of inbound clients said they were hesitant to shop with Kosmimata again after experiencing checkout problems, which threatened the brand’s image of luxury and reliability.
Solution
To tackle these challenges, Kosmimata turned to Gold Pomelo to accept payments globally, which delivered impressive results:
Elevated Approval Rates: Kosmimata saw their card payment approval rate jump from 55% to an impressive 80% after integrating Gold Pomelo’s solution. This 25% increase meant more customers could successfully complete their purchases, driving a 25% boost in global sales within just three months.
- Significant Reduction in Fraud: With the introduction of 3DS 2.0 technology, Kosmimata experienced a 60% drop in fraud cases almost immediately. This reduction protected around $150,000 in revenue in the first month alone, which would have otherwise been lost.
- Streamlined Operations: With chargeback disputes and payment-related issues resolved, Kosmimata’s team could shift their focus back to what they do best—crafting and showcasing beautiful jewelry.
- Improved Cash Flow: Payment delays were significantly reduced, cutting down transaction processing time from 7 days to just a few days. This quicker turnaround allowed Kosmimata to maintain a healthier cash flow, which they reinvested into expanding their product offerings and marketing efforts.
What Gold Pomelo Did to Help
Gold Pomelo provided a customized global payment solution that addressed Kosmimata’s specific needs. Key interventions included:
- Localized Payment Gateways: Gold Pomelo implemented region-specific payment gateways, which led to a reduction in decline rates in previously challenging markets.
- Advanced Fraud Detection: Cutting-edge fraud detection and prevention tools like RDR and Ethoca were integrated, leading to a 60% reduction in fraud cases. This ensured legitimate transactions were approved, while fraudulent ones were blocked in real-time.
- Optimized Payment Routing: Intelligent payment routing was used to select the most efficient paths for transactions and further minimizing the risk of declines.
These tailored solutions didn’t just boost Kosmimata’s payment success rate; they also enhanced the overall shopping experience, making it easier and more enjoyable for customers around the world to purchase their stunning jewelry.
Confirmed cases of fraud or customer disputes from issuing banks on the Ethoca network are rapidly sent to merchants, enabling both merchants and issuers to significantly reduce their fraud and chargeback costs.
