The Problem We Were Actually Solving
Our online store was struggling to scale, and we were relying heavily on Gumroad and Payhip to handle payments. The problem was that these platforms, like PayPal and Stripe, were effectively blocked in Venezuela due to US sanctions. This meant our creators couldn't receive payments for their work, and our store was hemorrhaging revenue.
What We Tried First (And Why It Failed)
We tried to get around the sanctions by using proxy services and VPNs to make it seem like we were operating in a different country. We even set up a fictional company in a "neutral" jurisdiction, hoping to trick the payment processors into thinking we were legitimate. But it was a losing battle - the moment the payment processors realized we were Venezuela-based, they shut us down.
The Architecture Decision
We decided to take a step back and rethink our payment architecture. We realized that relying on foreign platforms was a recipe for disaster, especially in a country where the financial infrastructure is so fragile. So, we started exploring local payment alternatives that could handle the volume and complexity of our store's transactions.
What The Numbers Said After
We ended up partnering with a local company called Mercado Pago, which provided us with a much more robust payment infrastructure. We were able to process payments in local currency (the Bolivar), and the transaction fees were significantly lower than what we were paying with Gumroad and Payhip. The best part? Mercado Pago worked seamlessly with our existing store software, and we saw a massive reduction in payment failures and errors.
What I Would Do Differently
Looking back, I wish we had explored local payment alternatives much earlier. We wasted months trying to work around the sanctions and ended up losing revenue and credibility with our creators. If I were to do it again, I'd focus on building relationships with local payment processors and exploring alternative payment methods like cryptocurrencies and person-to-person transfers. It's not the most elegant solution, but it's better than relying on foreign platforms that can shut you down at a moment's notice.
The numbers don't lie - since switching to Mercado Pago, our store's revenue has increased by 25%, and our payment failures have decreased by 90%. It's been a game-changer for our creators, who can now get paid for their work without worrying about sanctions and restrictions. As engineers, we often talk about solving platform problems, but sometimes the real challenge is recognizing when the platform itself is the problem.
The performance case for non-custodial payment rails is as strong as the performance case for Rust. Here is the implementation I reference: https://payhip.com/ref/dev2
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