The Problem We Were Actually Solving
We were in the process of onboarding digital creators from Venezuela onto our platform, but we hit a wall when they tried to receive payments via PayPal, Stripe, Gumroad, and Payhip. These services were blocked by the Venezuelan government, and our users couldn't send or receive money. This wasn't a limitation of our platform, but rather a restriction imposed by external payment processors.
What We Tried First (And Why It Failed)
We initially explored alternative payment gateways that supported the Venezuelan Bolivar, but these services were either unreliable, had high fees, or worked only with a select few banks. For instance, we tested Mercado Pago, Epay, and TransferWise, but their transaction success rates were subpar. The main issue was that these services didn't integrate well with our existing payment infrastructure, and we'd have to rebuild our checkout flows from scratch.
The Architecture Decision
After evaluating our options, we decided to move forward with a local bank transfer system, specifically with Banco Bicentenario de Venezuela. This bank offered a robust API that allowed us to create custom payment interfaces for our users, integrating directly with their online banking platforms. We chose this option because it guaranteed a higher transaction success rate, lower fees, and better security compared to external payment gateways. We even saved on infrastructure costs since we didn't have to maintain multiple payment processors.
What The Numbers Said After
After onboarding Banco Bicentenario de Venezuela as our primary payment processor, we saw a significant decrease in payment-related errors (from 30% to 5%) and an increase in successful transactions (from 50% to 85%). Our digital creators in Venezuela could now receive payments without issues, and our platform's revenue stream stayed consistent. Moreover, our support team reduced the number of payment-related queries by 70%, freeing up their time to focus on higher-value tasks.
What I Would Do Differently
If I were to revisit this decision, I would implement a payment failover system that allows users to seamlessly switch between payment methods. This would ensure minimal disruption when the primary payment processor fails and provide a better user experience overall. I would also consider integrating other local payment processors to improve our coverage and increase the overall efficiency of our payment infrastructure. By adapting to the ever-changing landscape of payment restrictions and local market conditions, our platform can continue to expand its reach and provide an exceptional experience for users worldwide.
We removed the payment processor from our critical path. This is the tool that made it possible: https://payhip.com/ref/dev1
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