Why we invested in Skipify, the next-gen Connected Wallet
Checkout friction on mobile devices is an ongoing and substantial hurdle that consumers face when online shopping. In a digital landscape where convenience and speed are paramount, the statistics are telling – with an average cart abandonment rate of 70%, a significant portion of potential sales slips through the fingers of online merchants. This high abandonment rate translates into lost revenue, missed opportunities, and an underutilization of the e-commerce potential that mobile offers.
Beyond the obvious losses suffered by merchants, checkout friction has a ripple effect throughout the entire online payment ecosystem. Credit card issuers and payment processors are among those who bear the brunt of this issue. When shoppers abandon their carts, it means fewer transactions and less revenue for these financial entities. The impact can be especially pronounced when considering the vast scale of online transactions.
Enter Skipify, a fintech company on a mission to remove friction from the shopping journey and strengthen merchant-customer relationships. By creating a seamless e-commerce infrastructure for efficient checkouts, Skipify’s Connected Wallet connects financial institutions, e-commerce providers, and merchants to enable instant checkouts with pre-filled details by only entering an email.
With an impressive roster of 3,500 merchants, Skipify’s approach is differentiated through its partnership-driven strategy which is proving to be a sustainable and efficient model in a competitive market. Skipify has secured strategic support from financial heavyweights like American Express, PayPal, and Synchrony. This backing supports Skipify’s ability to auto-populate credit card data on their way to a staggering 100 million shoppers and provide a seamless checkout experience.
We invested in Skipify because of the potential this seamless and native checkout experience could bring to Samsung users and beyond. The founding team behind Skipify boasts a wealth of experience, with Ryth Martin at the helm as CEO. The team’s extensive expertise in consumer and e-commerce, coupled with their previous roles at prominent companies, positions them well to drive Skipify’s success. Skipify has already been recognized as a Fintech Top 50 company, a Leading 100 startup, and a CB Insights Retail Tech 100 winner.
Skipify aims to build a better, more open version of Apple Pay, and it is well on its way to revolutionizing the online payments industry. We’re excited to join them on this journey, as they embrace the challenge of defining new opportunities and aim to shape the future of shopping experiences.
Carlos Castellanos is an investor at Samsung Next. Samsung Next’s investment strategy is limited to its own views and does not reflect the vision or strategy of any other Samsung business unit, including, but not limited to, Samsung Electronics.