Case Study: everything5pounds gears up for success.

Founded in England in 2010, everything5pounds is a privately owned budget clothing company. The firm employs over 200 people in the UK and for the past 7 years it has been constantly pushing boundaries to bring trend-led clothing to the masses, for no more than £5 per item. The firm is now selling to over 1.5 million registered customers worldwide and experiencing sustainable growth all over the world.

Compared to the more widely known fashion retailers, everything5pounds is relatively small. Despite being a relatively new player in the online fashion business, the company had ambitions to expand its footprint globally, to become the go-to budget clothing company. In doing so, it soon realised that its payments infrastructure had come to the end of its lifecycle and was not suitable to sustain long-term growth.

The main hurdle for any merchants willing to expand to foreign territories normally lies with the ability to cater for the enormous variety of shopping behaviours around the world, to maximise conversion rates. The way shoppers purchase online goods differ from country to country; British customers are known to prefer credit cards, whereas Brazilian shoppers rely on “Boleto”. This differs from the Netherlands and any other country where customer shop online.

Fraud and risk management also poses a threat to modern retailers. With the ability to easily process hundreds and thousands of payments every month, it has become easier for fraudsters to hide behind huge transaction volumes and for merchants to single those out without hindering genuine purchases. everything5pounds was on the lookout for a reliable payment partner able to overcome these challenges and help expand its footprint both in-country and overseas.

“After shopping for an ideal payments technology provider in the UK, we saw in SafeCharge the ideal partner able to take us further in our journey” said Cenk Dumlupinar, CEO, everything5pounds. “Coming from a challenging and competitive financial environment, SafeCharge’s credentials were impressive and after working together for years, we have not experienced any downtime.”

Selling cross-border

The firm’s original payment platform was built in-house, based on open source technology. After growing at a 3-digit pace since inception in 2010, the company realised that in its current form, the platform was not suitable to provide the level of service needed to operate on a larger scale. Through a single integration to SafeCharge’s end-to-end payments platform, everything5Pounds had access to Card Acquiring, smart checkout, alternative payment methods and more.

Furthermore, after seeing large customer demand coming from eastern and southern European markets, everything5pounds was noticing that its webpages were showing in English, regardless of the location of the shopper. By partnering with SafeCharge, the company was able to tailor the website for each specific country, and users were able to view the checkout page in their preferred language whilst filtering and prioritising the payment methods and currencies most likely to be used in that geography. This helped to increase conversions by 15%.

A reliable payments partner

As the number of transactions globally started to soar, everything5pounds needed to rely on a payment provider that would guarantee the highest uptime, ‘Always On” approach, to avoid losing customers at the checkout. “One of the worst things that could happen to a small business owner is the thought of the payment gateway going down” stated Dumlupinar.

“Although it is advisable to keep a backup gateway in case of temporary failure, since we started working with SafeCharge we had almost no issues related to downtime. This is the best level of service I have witnessed to date.”

Through SafeCharge’s acquiring capabilities, everything5pounds was able to handle more than 200.000 monthly transactions from one single dashboard. This meant it could take advantage of transparent back office as well as matching and reconciliation capabilities, all of which was welcomed by the finance department.

Better fraud management

The ability to process transactions worldwide has brought a significant opportunity for everything5pounds to grow its footprint and drive additional revenue. However, it also presented various challenges concerning the number of fraudulent transactions that were inevitably spiking through the site, particularly during themed campaigns. As of October 2016, 0.5% of the company revenues were lost to chargeback. Even though the number was still lower than the threshold set by Visa and Master Card, it meant that everything5pounds was losing proceeds due to the lack of defined fraud management protocols.

“The only way to handle fraudulent transactions is to establish the right set of rules able to identify the fraudster without running the risk of blocking a genuine transaction that could be identified as suspicious” said Dumlupinar. “We initially developed our own fraud prevention platform, which was fully integrated with our ERP system. Although many basic algorithms and rules were in place, we still needed to rely on one person to manually examine hundreds of transactions daily and isolate the ones who were coming up as fraudulent. Based on our increasing transaction volumes, this approach proved to be vastly inefficient. With SafeCharge, we were able to deploy a fully automated platform and implement dynamic 3D Secure, allowing to set custom rules based on various datasets – including customer reference numbers, postcodes and other sensitive information – bringing the chargebacks down to 0.2%.”

“Our risk engine platform is able to quickly and effectively adapt transaction check rules, where automated algorithms can single out a suspicious transaction based on the links between many parameters such as card numbers, email addresses, IP addresses, device type and more”, stated David Avgi, CEO at SafeCharge. “All transactions passing through SafeCharge Payments Engine are checked, bringing peace of mind to both the businesses we serve and their customers.”

What’s Next?

After a successful implementation, everything5pounds is not planning to rest on its laurels. The company is on course to open mirror websites throughout Europe, aiming to achieve commercial success from within foreign countries. “By relying on SafeCharge language support, we don’t have to spend valuable time on translations, as these can be easily implemented with minimum effort from our part” stated Cenk.

“Additionally, by implementing newer payment methods such as Apple Pay and WeChat Pay, we feel we are in a position to better capitalise on current shopping trends and the opportunities presented by the Chinese market, whilst further broadening our reach.”

Benefits:

  • Automated fraud management with Dynamic 3D Secure
  • Ability to sell in 90 different countries, accepting more than 150 payment methods worldwide
  • Detailed transaction status notifications and full integration with ERP system
  • Unified management capabilities under a single pane of glass
  • Guaranteed service uptime

About everything5pounds

everything5pounds, based in Great Central Way, London, is a dynamic website that offers high-street fashion items priced at £5. The company established itself as global front-runner for online budget fashion, by pushing boundaries to bring cheaper trend-led clothing.

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SafeCharge Limited is an Electronic Money Institution authorised and regulated by the Central Bank of Cyprus and is a principal member of Mastercard, Visa and Unionpay International (CUP). SafeCharge Financial Services Limited is authorised and regulated by the Financial Conduct Authority as a Payment Institution. Both SafeCharge companies are wholly owned by SafeCharge International Group Limited.