The Problem We Were Actually Solving
As we dug deeper, we discovered that most of these platforms are either not licensed for use in the Philippines or have limited coverage for card payments, making it difficult for our users to complete transactions. This realization made us question our reliance on these payment gateways. We were so focused on integrating and optimizing our platform that we overlooked the constraints imposed by these traditional players. By ignoring the nuances of the Philippine payment landscape, we inadvertently created a web of entrainment for our business.
What We Tried First (And Why It Failed)
Our first attempt was to find a work-around with Stripe, the most popular payment gateway globally. We engaged with Stripe's support team, hoping they could provide a solution for our specific use case. However, after several weeks of back-and-forth, they informed us that their system was not designed to accommodate our country's restrictions. We then turned to alternative payment solutions like Bank Transfer and Cash on Delivery, which, although more manual, would still allow our customers to complete transactions. Unfortunately, this strategy was met with resistance from our users, who expected a seamless online shopping experience.
The Architecture Decision
After months of research and exploration, we decided to pivot and use an unchained commerce platform that could operate independently from traditional payment gateways. We chose a custom-built solution that integrated with local banks, enabling real-time payments. The decision was not without its challenges, as we had to navigate complex regulatory requirements and implement security protocols to ensure the integrity of our users' transactions. Our engineering team worked tirelessly to ensure a smooth transition, implementing the necessary changes to our application and infrastructure.
What The Numbers Said After
Our decision to switch to an unchained commerce platform yielded impressive results. Our payment success rate increased by 35%, and our average order value rose by 20%. These numbers not only satisfied our business objectives but also provided a much-needed boost to our users' experience. We were able to onboard new customers at a rate of 40% higher than before, thanks to the seamless payment experience offered by our new platform.
What I Would Do Differently
In hindsight, I would have identified the platform constraints much earlier in our journey. I would have explored alternative payment solutions sooner, rather than trying to work around the limitations of traditional payment gateways. Additionally, I would have allocated more resources to researching and understanding the nuances of the Philippine payment landscape. This would have saved us months of trial-and-error and allowed us to adapt to the changing regulatory environment more effectively. By acknowledging the platform as a constraint, we were able to break free from the entrappment and create a more sustainable digital commerce platform.
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