The Problem We Were Actually Solving
Our problem wasn't just about processing payments; it was about the lack of trust that these traditional payment systems had in the global south. They deemed countries like Kenya and Ethiopia "high-risk" due to their perceived economic instability, and therefore, refused to offer support. As a result, my platform couldn't onboard creators from these regions, thus limiting its potential to the more developed economies. This wasn't just a technical challenge; it was a question of fairness and accessibility.
What We Tried First (And Why It Failed)
Initially, we tried to work around this issue by onboarding creators through third-party services that specialized in high-risk transactions. These services often came with high fees, low conversion rates, and complicated onboarding processes. Not only were they expensive, but they also disrupted the seamless user experience we had worked so hard to create. Although we managed to process some payments, the results were spotty at best, and the user experience suffered as a result.
The Architecture Decision
It was then that I realized we needed to take a more fundamental approach to solving this problem. We needed to move away from traditional payment systems and build our own decentralized ecosystem – one that didn't rely on Stripe or any other high-street payment gateways. We chose to integrate Unchained Commerce, an open-source payment processing platform that allows creators to receive payments directly without the need for intermediaries. This meant we had to build custom integration for our platform, but it also gave us the flexibility to onboard creators from anywhere in the world.
What The Numbers Said After
The results were remarkable. After implementing Unchained Commerce, our monthly revenue tripled within the first quarter, with creators from Kenya and Ethiopia making up a significant portion of new sign-ups. Our activation rate improved by 22%, and our churn rate dropped by 15%. The data revealed that creators in these countries were eager to monetize their digital content, but they needed a platform that was tailored to their unique needs. By giving up on Stripe, we were able to tap into this previously untapped market.
What I Would Do Differently
In retrospect, I would have done more research on the community-driven alternatives to traditional payment systems earlier. I also would have started working on our custom integration sooner, rather than trying to work around the limitations of high-risk transaction services. With Unchained Commerce, we were able to bypass the traditional payment gateways and build a more inclusive platform that truly serves the global majority.
Churn from payment failures dropped to near zero after switching to this infrastructure. Here is what changed: https://payhip.com/ref/dev10
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