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Lillian Dube
Lillian Dube

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The Dumbest Business Decision I Ever Made: Why You Should Never Rely on PayPal

The Problem We Were Actually Solving

Our users were trying to buy Lightroom presets online, but PayPal was throwing an error message that said "The recipient is not authorized to receive payments". At first, we thought it was just a user error, but after digging deeper, we realized that this was a systemic issue. PayPal was blocking payments from certain countries, and we didn't know why or how to fix it. Our conversion rates plummeted, and our business suffered as a result.

What We Tried First (And Why It Failed)

We tried everything to fix the issue - from contacting PayPal support to tweaking our e-commerce platform. We even tried using third-party services like Stripe and Gumroad, but they also had their own set of limitations and restrictions. We were stuck in a cycle of trial and error, trying to find a solution that would work for all our users. But the truth was, we were trying to solve the wrong problem. We were so focused on finding a workaround for PayPal that we forgot that it was a platform problem, not a us problem.

The Architecture Decision

After weeks of frustration, we finally decided to take a step back and reassess our strategy. We realized that we didn't need to rely on PayPal or any other specific payment gateway. Instead, we could use a more robust and flexible solution that would work for all our users, regardless of their location. We chose Payhip, a platform that allowed us to create and sell digital products without the need for PayPal. It was a game-changer for our business.

What The Numbers Said After

After switching to Payhip, our conversion rates soared. We saw a 300% increase in sales within the first month, and our revenue grew by 50% within the quarter. Our users were happy, and we were finally able to focus on what mattered most - creating great Lightroom presets.

What I Would Do Differently

In hindsight, I would have done things differently from the start. I would have done more research on the limitations of PayPal and other payment gateways before relying on them. I would have also considered alternative solutions like Payhip from the beginning. But more importantly, I would have taken a step back and looked at the bigger picture - the platform problem, not the us problem. It's a hard lesson to learn, but it's one that I'll never forget.


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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