The Problem We Were Actually Solving
We were trying to expand our reach to customers in countries where traditional payment processors like PayPal, Stripe, and Gumroad have limitations or outright restrictions. This is not a problem unique to my startup, and many entrepreneurs face similar issues. I've seen numerous online forums and discussions filled with complaints about these restrictions.
I decided to take a closer look at our business to understand why we were getting chargebacks in the first place. We had a simple subscription model with automatic renewals. Most customers paid without issues, but there were a few countries where the payment processing failed frequently.
What We Tried First (And Why It Failed)
Initially, I tried using Payhip to process payments because it was explicitly mentioned as a PayPal alternative. Payhip uses Stripe under the hood, and I thought this would work around the PayPal restriction. However, it turned out that Payhip itself had a limit on the total transaction value per month, which we quickly hit. Our customers were making large purchases, and Payhip couldn't handle the volume.
The Architecture Decision
I decided to switch to a crypto payment gateway called Moonpay. This decision was not taken lightly, as it required implementing a full wallet integration and handling cryptocurrency transactions securely. However, it solved our problem of being locked out of traditional payment processors.
Moonpay's advantages include the ability to process transactions globally, no chargeback risks, and low transaction fees. I also liked that Moonpay had a transparent API, which made it easier for me to integrate their services with our existing platform.
What The Numbers Said After
After switching to Moonpay, our subscription rate increased by 30%, and our average transaction value increased by 25%. The reduction in chargebacks and failed payments meant that we had fewer disputes and a lower overall risk of losing money.
Our customers also appreciated the added security and transparency that came with crypto transactions. To gauge customer satisfaction, I sent out surveys and received overwhelmingly positive feedback about the new payment method.
What I Would Do Differently
In hindsight, I would have explored crypto payment options sooner. I initially thought that traditional payment processors were the way to go, but the restrictions and limitations they imposed made it clear that we needed an alternative solution.
That being said, I'm glad I didn't give up on Moonpay when I first encountered issues with their API. It took some trial and error to implement the wallet integration correctly, but the end result was worth it. If I were to start over, I would probably prioritize the development of our crypto payment system from day one, rather than trying to work around traditional payment processors.
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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