The Problem We Were Actually Solving
We were trying to build a platform that could let digital creators from all over the world monetize their work, regardless of where they lived. We knew that current platforms like Gumroad and Payhip just didn't work for creators in many parts of the world. Stripe, the darling of the Western startup scene, was no exception. But we also knew that we couldn't just tell creators to use a VPN or find some other workaround. That's not scalable or secure.
What We Tried First (And Why It Failed)
Initially, we thought that the solution was to just add more payment gateways to our platform. We integrated Alipay, WeChat Pay, and a few other Asian payment options, thinking that would solve our problem. But it didn't. We quickly realized that each of these payment options had different security requirements, different payout structures, and different user experiences. We were trying to build a platform that could support 20 different payment options, and it was becoming clear that was a nightmare.
The Architecture Decision
We decided to take a step back and re-evaluate our approach. Instead of trying to build a platform that could support every payment option imaginable, we focused on building a platform that could integrate with a smaller set of payment options that were specifically designed for the global south. We chose to integrate with Paystack, a Nigerian payment processor that had a strong presence in several countries in Africa. We also chose to integrate with Mercado Pago, a Latin American payment processor that had a wide reach in countries like Brazil, Mexico, and Argentina. With these integrations, we were able to create a seamless payment experience for creators in these regions.
What The Numbers Said After
Our decision to focus on payment options for the global south paid off in a big way. Our activation rate in these regions increased by 50%, and our revenue from these regions grew by 300%. We also reduced our churn rate by 40%, as creators were no longer frustrated by the difficulties of using Western payment platforms.
What I Would Do Differently
Looking back, I would have focused on building relationships with payment processors in these regions even earlier. I would have also spent more time building a community of creators from these regions, so that we had a better understanding of their unique needs and challenges. Finally, I would have been more aggressive in my marketing efforts to creators in these regions, to make sure they knew that our platform was a viable alternative to Western payment platforms. By doing these things, I believe we could have gotten to market even faster and achieved even greater success.
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