Video | From Declines to Approvals: How Kipp Is Transforming Payment Outcomes

In the second episode of Protiviti’s Fintech Innovation Series, part of our Modern CIO Dilemma campaign, Melissa Desjardins, a director within Protiviti’s Technology Consulting solution, sits down with Chanan Lavi, founder of Kipp, to explore the next wave of innovation in the payments ecosystem. Their conversation delves into the challenges of payment declines, the importance of collaboration between merchants and issuers, and the leadership lessons learned in building a fintech from the ground up.

Key Insights from the Discussion

• Tackling the Decline Dilemma — A Collaborative Approach: Kipp was founded to address a persistent pain point in the payments industry: the high rate of transaction declines, particularly those due to insufficient funds (NSF). Declines impact merchants, issuers and consumers alike, with industry data showing that up to 15% of transactions are declined by card issuers. Kipp’s solution, Lavi says, enables merchants and issuers to collaborate, sharing data and risk to approve more transactions that would otherwise be lost. Merchants can opt to pay a small premium to incentivize issuers to authorize marginal transactions, resulting in a win-win for all parties — more sales for merchants, more revenue and happier customers for issuers, and a smoother experience for consumers.
• Measurable Impact — Boosting Merchant Performance: The results speak for themselves: Kipp’s platform delivers an average 35% save rate — the proportion of declined transactions converted to approvals. For subscription-based merchants, the impact is even greater, with over 50% of customers retained compared to traditional retry mechanisms. This translates to 20–30% more successful transactions than merchants typically achieve on their own. The onboarding process is streamlined, Lavi says, requiring no technical integration for merchants and minimal lift for issuers, especially through strategic partnerships like the one recently announced with FIS.
• Strategic Partnerships — Scaling Through Collaboration: Building a network of merchants and issuers is no small feat. According to Lavi, Kipp’s go-to-market strategy focuses on direct engagement with large enterprise merchants and forming partnerships with issuer processors like FIS, which covers over half of the U.S. debit card market. These alliances accelerate adoption by reducing technical barriers and aligning incentives across the ecosystem.
• Security and Regulatory Considerations: Security and privacy are foundational to Kipp’s product design. The platform is SOC 2 certified and intentionally avoids collecting personally identifiable information (PII) or sensitive payment card data. Instead, Lavi says, it operates on transaction profiles and anonymized identifiers, ensuring compliance with stringent regulatory requirements. Kipp tailors its approach to align with the regulatory environments of its banking partners, enabling features like fee-free overdraft approvals without impacting consumer credit scores.
• Technology and AI — Empowering Smarter Decisions: Kipp’s technology, Lavi explains, is built on robust API connectivity between merchants and issuers, supported by a real-time control center for rule management and analytics. Recently, Kipp has integrated artificial intelligence (AI) tools to enhance analytics and provide actionable recommendations for both merchants and issuers. While the platform avoids black box automation, AI is used to advise on rule-setting and to streamline transaction analysis, empowering users to make informed decisions quickly.
• Leadership and Lessons for Entrepreneurs: Lavi shares candid reflections on the entrepreneurial journey — highlighting the importance of industry expertise, timing and building a strong network. Partnerships with organizations like MasterCard and participation in accelerator programs, she says, were instrumental in Kipp’s early success. For aspiring fintech founders, Lavi emphasizes the value of understanding the industry’s infrastructure and staying connected through conferences and ongoing learning.

Looking Ahead: The Future of Collaboration in Payments

Kipp’s vision is to build a critical mass of merchants and issuers, unlocking new opportunities for data sharing and real-time collaboration. As the payments landscape continues to evolve, the ability to adapt, innovate and foster trust across the ecosystem will be key to driving growth and resilience.

This conversation is a must-watch for fintech leaders, payments professionals and anyone interested in the future of collaborative innovation in financial services.

The Modern CIO Dilemma

In this exclusive series from Protiviti, explore quick-hit insights and executive perspectives on the evolving role of the CIO in financial services. The Modern CIO Dilemma distills key conversations into video briefings and podcast episodes. You’ll hear directly from finance transformation leaders on how CIOs are tackling today’s most pressing issues, from regulatory uncertainty to payment modernization. Whether you're rethinking your data architecture, implementing AI responsibly or preparing for the next compliance shift, this series brings clarity to complexity — fast.

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