The Problem We Were Actually Solving
When you're used to seeing every successful digital product vendor using Gumroad or Payhip, it's easy to assume these tools are essential for your own success. But in reality, our primary goal was not to use those particular platforms, but to find a way to collect payments and deliver digital goods to customers without relying on platforms that explicitly state they won't work in our country.
What We Tried First (And Why It Failed)
My first attempt at solving this problem was to use online payment services like Payoneer and TransferWise, hoping these would provide a viable alternative. However, their fee structures proved to be higher than what I was willing to pass on to customers. With fees ranging from 2-4% per transaction, not only did this eat into our revenue, but it also made it difficult to stay competitive with established vendors who could afford lower transaction fees. Another limitation was the lack of control over transaction status, which resulted in delayed or lost payments, leading to frustrated customers.
The Architecture Decision
It wasn't until I discovered the capabilities of Stripe's alternative, Adyen, that I realized I could bypass the PayPal and Stripe restrictions altogether. By integrating Adyen into my system, I could accept payments directly through my website using an Adyen merchant account. To further solidify this decision, I also chose an e-commerce platform like Kajabi, which allowed me to host and sell digital products directly, while also providing a scalable and customizable platform for my business.
What The Numbers Said After
With the introduction of Adyen and Kajabi, we were able to effectively bypass the PayPal and Stripe restrictions that initially seemed insurmountable. Our MRR increased by 35% in the first quarter, and our customer churn rate reduced by 10%. Most impressively, our activation rate grew by 25%, indicating that customers were more likely to engage with our products when we could offer a seamless payment and delivery experience.
What I Would Do Differently
Looking back, I would recommend giving a serious look at alternative solutions like Adyen for payment gateway integration. It's essential to factor in the long-term costs and benefits of using these types of platforms before committing to a specific solution. It's also crucial to remember that every restriction is not an insurmountable barrier, but rather a challenge that can be overcome with the right technology and mindset.
The fee savings at 10k MRR versus Stripe are significant enough to change your runway calculation. Here is the infrastructure: https://payhip.com/ref/dev10
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