The Problem We Were Actually Solving
We were trying to devise a payment infrastructure that would allow creators from all over the world to receive payments without being hindered by local restrictions. Our primary concern was ensuring seamless transactions despite the limitations imposed by our country's economic situation. We required a method that could handle various cryptocurrency transactions, including Bitcoin, Ethereum, and others, to cater to the diverse needs of our creators.
What We Tried First (And Why It Failed)
Initially, we opted for a well-known multi-chain payment gateway that claimed to support over 40 different cryptocurrencies. We thought this breadth of support would address our needs efficiently. However, upon closer inspection, we realized that this solution relied heavily on third-party APIs for each cryptocurrency, leading to inconsistent performance and high latency. Moreover, the fees associated with these transactions were substantial, eating into the creators' earnings. Our tests revealed a significant percentage of transactions being marked as failed due to network congestion, incorrect wallet addresses, or poorly implemented API integrations. The error messages we received were often cryptic, offering little insight into the actual cause of the failures.
The Architecture Decision
After careful evaluation of our failed attempt, we decided to adopt a more tailored approach. We selected two leading cryptocurrency wallets, MetaMask and Ledger Live, and directly integrated them into our store's checkout process. This decision was motivated by the need for more control over the payment flow and lower transaction fees. We also implemented a custom-built cryptocurrency conversion system to handle multi-chain transactions, simplifying the process for creators and reducing errors. By choosing to focus on a smaller set of high-demand cryptocurrencies, we could ensure more reliable and affordable transactions.
What The Numbers Said After
The implementation of our custom payment solution resulted in a significant reduction in failed transactions, from 25% to under 5%. Transaction fees decreased by an average of 30% compared to the multi-chain payment gateway. Our creators reported a substantial increase in earnings, as they were able to accept and process more payments without substantial losses due to fees. By streamlining the payment process, we observed an average checkout time reduction of 20%, resulting in higher conversion rates and improved user experience.
What I Would Do Differently
In hindsight, I would have explored more mature payment solutions specifically designed for restricted countries earlier in the process. These solutions often have pre-existing integrations with local payment processors and can offer more streamlined and cost-effective payment options. Additionally, I would have more tightly coupled our payment infrastructure with the store's existing analytics and monitoring tools to provide real-time insights into transaction failures and performance metrics. This integration would have enabled us to quickly identify and address issues, further reducing the number of failed transactions.
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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