Nuvei Debuts Tools to Boost Merchant Authorization Rates

Nuvei has introduced features aimed at improving its authorization rate for merchants in North America.

The Canadian FinTech announced Thursday (July 24) it had added PIN-less debit and least cost routing to its authorization optimization suite, inclusions designed to improve authorization rates by up to 3.5 percentage points for applicable transactions.

“These enhancements give merchants access to debit networks that can deliver both higher approval rates and lower processing costs,” Nuvei Chair and CEO Philip Fayer said in a news release.

“Our smart routing engine gives merchants the flexibility to prioritize maximum approvals or cost efficiency based on their business objectives. It’s about putting optimization in their hands and helping them turn payments into profit.”

According to the release, both features are now available in the U.S., letting eligible transactions bypass traditional card rails in favor of lower-cost local debit networks. They are what Nuvei says is a crucial part of its strategy to expand in North America.

“As regulatory changes, issuer behavior, and consumer payment preferences evolve across the region, Nuvei’s intelligent routing and authorization tools give merchants the control and flexibility needed to drive higher approvals, lower costs, and accelerate growth in one of the world’s most competitive payments markets,” the release added.

Research by PYMNTS Intelligence has charted the continued rise of debit as a preferred method of spending.

That research showed that, at the beginning of this year, “cash on hand” has been a guiding force for consumers making everyday purchases, such as groceries or smaller retail transactions.

“For example, 44% of consumers made grocery purchases with debit cards, compared with 26% opting for credit,” PYMNTS wrote recently. “In retail environments, the respective percentages were 39% and 30%. Debit has also been cited for its convenience.”

This rise, that report added, along with the value consumers place on rewards to help manage their day-to-day finances, is giving new life to debit rewards.

Meanwhile, PYMNTS spoke last week with Nuvei SVP Trey Swallow about the way digital pivot transforming payments is leading independent software vendors (ISVs) to reconsider their business models.

For a long time, payments were an add-on for ISVs. Payments “typically weren’t built into their individual software and kind of an afterthought,” Swallow said. This approach placed the primary focus on the software itself, instead of the integrated payment experience.

Now, the challenges of innovation in the space are now causing ISVs to move away from merely linking to external payment solutions and embrace a deeper integration, curating the complete user journey within their platforms.

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