Case Study: Spotify achieves a 98% reduction in chargebacks and $145,000/month savings with Kount

Cutting Chargeback Costs and Expanding Internationally Is Music to Spotify’s Ears

Spotify, the global music-streaming service, faced recurring e-card fraud that drove chargeback rates to 10% and forced temporary suspension of e-card sales. With e-cards a key revenue driver, Spotify needed a reliable fraud solution that fit its unique checkout flow and could stop losses without blocking legitimate customers.

Spotify implemented Kount with a custom integration and tested it in “dark mode” before going live. Chargebacks fell to 0.1–0.2% (a 98% reduction) with no manual reviews, saving about USD $145,000 per month, more than doubling e-card sales (contributing $10M in revenue) and enabling rapid expansion into 57 countries in seven months.

Spotify

Federico Pezzotti

Head of Payment Operation