Customer stories

Fubo shoots and scores with payments innovation and robust fraud protection

From offering essential payment methods to providing accurate reporting, explore how Fubo utilized Adyen’s technology to optimize their payments setup, increase authorization rates, and protect their business from fraud.

April 29, 2024
 ·  11 minutes

Fubo is a leading sports-first live TV streaming platform. It carries hundreds of live channels and aims to build a leading global platform with a wide breadth of premium content and interactivity.

What does a live TV streaming platform have in common with a financial technology platform? A partnership built on innovation, ambition, and a common goal. Like a sports team playing to win – Fubo and Adyen are working together to push the boundaries of live TV with payments optimization, strong fraud protection, and robust reporting.

We spoke with Erik Gerson, EVP of Customer Experience, Data, and Analytics of Fubo, to explore how Fubo is increasing authorization rates, decreasing fraud rates, and opening up new business opportunities, supported by Adyen's technology.

Is this an offside?

Fubo wasn’t a stranger to payment solutions. Before Adyen, they previously worked with other payment gateway and acquiring solutions, but there were challenges.

One challenge they faced was the robustness of the reports they received from previous payment partners. "The reporting system was not ideal with our previous payments provider," Erik states.

Additionally, Fubo also faced a smaller challenge with introducing essential payment methods to their customers. “We’re looking at how we can continue to offer services to our customers, while enabling them to make payment digitally,” Erik explains.

To mitigate these challenges, Erik approached the finance team to discuss the possibility of switching Fubo’s payments provider to one that provided robust reporting, strong fraud protection, and better cost optimization.

Enter Adyen.

The hat-trick of solutions

Offering key local payment methods with a single integration

Fubo can unlock essential payment methods globally and connect to different payment methods with a single integration. This integration with Adyen enables Fubo to seamlessly accept payments via major credit cards along with key alternate payment methods.

"One of the things Adyen offers is a direct integration with CashApp Pay, and it's something we're looking for," Erik says. The direct integration will help Fubo reach more customers in the near future and open up more of the business.

Striking the right balance with RevenueProtect

Football and fall seasons are Fubo's busiest times of the year, when they get the most sign-ups. However, with great volumes come a greater risk of fraud and chargebacks.

"We get a lot of fraud and chargebacks during football season as people are searching for a place where they can catch their favorite content," Erik says.

When Fubo adheres to their policy of not refunding customers after the grace period, they tend to receive many chargebacks and fraud claims.

That's where RevenueProtect comes in. RevenueProtect is Adyen's fraud detection and prevention solution, powered by network-wide insights and machine learning technology. It enables businesses, like Fubo, to address unique risks and protect revenue with both real time risk assessments and customizable risk rules.

Fubo also works closely with Adyen to create "what if" scenarios to test how specific risk rules will pan out. It's something that Erik agrees has been very beneficial to the streaming platform. "This partnership has been excellent," he mentions.

Improving authorization rates with network tokens

"Approval rates are a huge part of our business." Erik says, "Conversion is everything for us – anything that we can do, like network tokenization, to improve the rate is great."

Network tokenization is an automated process that replaces a 16-digit Primary Account Number (PAN) with a non-sensitive reference called a network token. These network tokens are used to authorize online and recurring payments.

When a customer chooses to save their card details, the streaming platform can request a network token for that card and use that for future and/or recurring payments. Because network tokens don't expire, the token will remain valid even if the issuer replaces the card. This results in an increase in authorization rates for Fubo.

Ready, set, goal!

Fubo's authorization rate has improved 1.5% after working with Adyen. "We continually adjust our risk rules to balance our authorization rates with potentially letting illegitimate 'customers' onto our platform," says Erik.

Lastly, by offering critical alternate payment methods in different markets, Fubo can open up three times the business than what they currently have. "We're not getting up to three-quarters of the available business because we didn't have this integration with CashApp," Erik mentions.

Other than CashApp, the streaming platform is also exploring new alternate payment methods like Buy Now, Pay Later with Adyen.

They shoot, they score

It's easy to score in value and cost optimization with Adyen. Leverage our financial technology and payments innovation to reach your business ambitions today.

Explore how we can help take your digital business to the next level with an optimized, frictionless payment setup and robust fraud protection.

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