How Shmoody recovers 20% of failed payments with FunnelFox

how Shmoody recovers 20% of failed payments

Key highlights

  • Challenge: Failed transactions undermined Shmoody’s revenue and user satisfaction.
  • Solution: FunnelFox’s “payment failed” action that guided users to switch from prepaid to debit cards.
  • Outcome: 20% of failed transactions successfully converted into completed payments.

The Challenge

For Shmoody, one of the leading apps for mental health and habit tracking, smooth user experience is everything. But behind the scenes, a hidden problem was eating away at growth: a significant share of failed transactions, mainly from prepaid cards. 

When these payments broke down mid-flow, users were left frustrated, and Shmoody lost revenue that had nothing to do with churn or engagement, just friction in the payment process.

The team knew they needed a smarter way to handle these failures: a solution that could guide users toward using the right type of card for successful payments.


The Solution

failed payment recovery

Shmoody integrated FunnelFox’s “payment failed” action directly into its payment flow.

When a prepaid card was declined, users were redirected to a screen explaining the reason for the failure, paired with a clear CTA to retry using a supported payment method (such as a debit card).

This seamless approach turned dead ends into opportunities for recovery.


Results & impact

In the very first week, Shmoody was able to recover around 20% of failed transactions, and optimization is still ongoing.

  • 20% of failed transactions recovered 

Beyond the numbers, the impact was broader — the app gained resilience, ensuring fewer losses due to avoidable payment friction.

It’s impressive how such a simple feature delivered such a big impact. With FunnelFox, we removed a key point of friction in payments — guiding users to switch from prepaid cards not only helped us recover revenue that would have otherwise been lost, but also created a much smoother experience as they moved through the web-to-app funnel. FunnelFox made the process effortless.
— Mike McSweeney,
CPO & Co-Founder at Shmoody

For Shmoody, this wasn’t just a technical fix — it was a business win. A small tweak in the payment flow translated into meaningful gains for revenue, user experience, and long-term growth.


Shmoody & FunnelFox: A long-term growth partnership

Shmoody has been a long-term partner of FunnelFox, and together they launched their very first web-to-app funnels with the platform.

Instead of spending months building onboarding, paywalls, checkouts, and testing infrastructure in-house, Shmoody relied on FunnelFox to manage the entire web2app journey. For the past few years, FunnelFox has been powering Shmoody’s web acquisition, enabling the team to scale experiments, optimize funnels, and capture intent-driven traffic outside the app stores.

As a result, Shmoody achieved an 80% increase in ROAS within just 3 months. Weekly A/B testing fueled continuous optimization, while web acquisition grew to 70% of their total UA budget, which doubled to $300k.

👉 Want the full picture? Read the full story of how Shmoody increased ROAS by 80% in just 3 months.

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