Butter provides a payments intelligence platform that processes failed payments individually using machine learning models tailored to each business's specific data, optimizing retry strategies for maximum recovery. This approach addresses the significant revenue loss caused by failed payments, which accounts for 10% of subscription revenue and 50% of overall churn.
Funding
$37.5M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
NVFounders
Product
Problem
Subscription-based businesses face significant revenue loss due to failed payments, accounting for 10% of subscription revenue losses and 50% of overall churn. Traditional methods of recovering failed payments often lack the sophistication to address the nuances of individual payment failures.
Solution
Butter provides a payments intelligence platform designed to optimize failed payment recovery and reduce involuntary churn. The platform processes failed payments individually, leveraging machine learning models tailored to each business's specific data. By analyzing hundreds of data points related to each payment failure, Butter identifies the optimal retry strategy to maximize recovery rates. Butter integrates directly with existing payment processors and subscription management platforms, including Stripe and Recharge, as well as custom in-house platforms. This integration allows for a seamless and efficient recovery process, ultimately driving top-line ARR growth for subscription businesses.
Target Audience
Butter primarily serves B2C, B2B, SaaS, and e-commerce subscription companies seeking to reduce involuntary churn and increase revenue recovery.
Features
- Per-payment approach: Processes each failed payment individually, optimizing for success rather than using batch processing.
- Customized ML models: Builds machine learning models tailored to each business, deciphering data points to determine the best retry strategy.
- Direct integration: Integrates with payment processors and subscription management platforms like Stripe and Recharge.
- Revenue share contracts: Only makes money when recovering revenue for the customer.
- Payment Health Analysis: Assesses the financial impact of failed payments and the effectiveness of current retry strategies.
- Dispute management: Reduces chargebacks and disputes.
- SOC 2 Type 2 and PCI DSS Level 2 compliance.