Vaulted reveals payment technology built for subscription businesses at TechCrunch Disrupt, London and Digital Winners, Oslo

Stockholm, October 20, 2014 – Vaulted, a Swedish payment start-up founded by alumni of European payment household name Klarna, reveals its payment solution for subscription businesses at TechCrunch Disrupt, London and Digital Winners, Oslo.

Recent years’ development in online payments has brought a myriad of solutions aimed at facilitating and improving the completion of online transactions between buyers and sellers. Unfortunately for software and service companies that rely on subscription based business models or recurring purchases, few of these solutions take into account the challenges specific to continual payments.

“Conventional payment methods, aren’t built for subscription and recurring payments,” says Martin Engdahl, CEO and co-founder of Vaulted. “Take the credit card for example, one of the most widely used payment methods online worldwide: The expiry date is a built in churn mechanism, since only a fraction of users will go back to update user details if a card expires. E-wallets on the other hand require conversion-killing user registration and passwords that are often forgotten.”

Having worked as a product manager at the Stockholm based after-delivery payment pioneer Klarna for years, Mr. Engdahl and system architect colleague Jakob Sievers decided to do something about it.

“We’ve developed a proprietary solution, based on SEPA regulation, that allows us to let a user give his or her consent for payments to be directly debited from the bank account, simply by paying an invoice,” says the former product manager. “This means that users won’t need to register for our payment solution, purchases can be completed with top of the mind information and follow up payments are automatically debited on the due date.”

With Vaulted, buyers don’t register or create an account. Vaulted sends a first e-mail invoice and by paying it the buyer authorizes the seller to directly debit future payments from his or her account. Since the necessary bank data is stays in the bank network, Vaulted doesn’t have to ask the buyer for sensitive information. As for the seller, direct debit ensures each payment is made on time, reducing the administrative burden involved in payment reminders and reconciliation. The absence of expiration dates and passwords reduces churn and increases customer lifetime value.

“Direct debit has been around for ages,” says Mr. Engdahl. ”Across Europe, we know direct debit as the way utility bills and insurance is paid. By taking this ubiquitous method, simplifying the checkout and automating the direct debit mandate, we believe we can truly help subscription based businesses and customers interact safer and simpler than ever.”

About TechCrunch Disrupt
TechCrunch Disrupt Europe: London is TechCrunch’s first conference in the UK. The format combines top thought-leader discussions with new product and company launches. Morning executive discussions debate technology-driven disruptions in many industries, while the afternoons are reserved for the Startup Battlefield, where some 25 new companies will launch for the first time onstage, selected to present from numerous applications received from around the world. The winning company will receive a $50,000 USD grand prize and the Disrupt Cup at the conclusion of the conference. The conference is October 20-21, 2014 at Old Billingsgate in London.

For more information about Vaulted, please contact:
August Bard Bringéus, august@vaulted.com, Communications
Martin Engdahl, martin@vaulted.com, CEO