The company was purchased last month, said its former chief executive, Charles Rosenblatt, who noted intensifying competitive pressures.
Butter Payments, a business that has provided services to companies for managing customers’ subscription payments, has been acquired.
The company’s ex-CEO, Charles Rosenblatt, disclosed the sale in an interview last week. “We sold it about three weeks ago,” he said during a Friday interview. On his LinkedIn profile, Rosenblatt said the transaction took place in September.
He declined to name the company that has purchased Butter Payments, but said he expected the acquirer would make an announcement.
Butter Payments' business uses machine-learning algorithms and data from a consumer’s card and payment patterns to better understand why a subscription payment failed and how to resolve the problem.
“Non-sufficient funds is usually the leading source, but another one of the big ones is suspected fraud,” Rosenblatt said in a February interview.
In a press release earlier this year, Butter Payments cited the churn added up to a collective $440 billion annually in lost revenue for companies with subscription payment methods.
During the interview last week, Rosenblatt explained how the payments business has changed so that services like those offered by Butter Payments have been absorbed into broader suites of services owned by larger companies, causing more competitive pressure from bigger players. It was “very tough as a monoline business,” he said.
Rosenblatt likened the Butter Payments service to one of the myriad items listed on a restaurant’s menu. “ What we built was better than anyone else, but for other companies, we were page 18 of a 20-page Cheesecake Factory menu,” Rosenblatt explained.
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