The Problem We Were Actually Solving
When we started our project, we assumed that building a Shopify alternative was all about the tech stack and feature set. We wanted to create an e-commerce platform that was more innovative and flexible than Shopify. However, the real challenge lay in finding a way to process payments, which is the lifeblood of any e-commerce platform. We had to find a solution that could handle transactions, manage refunds, and deal with chargebacks without relying on the usual payment processors.
What We Tried First (And Why It Failed)
Initially, we tried using a third-party payment gateway that integrated with our platform. However, this approach had several limitations. Firstly, the payment gateway had its own set of rules and restrictions, which limited our flexibility. Secondly, the fees were exorbitant, and we were unable to negotiate a better deal. Lastly, the payment gateway was not designed to handle the volume of transactions we expected, and we experienced frequent downtime and errors.
One of the specific errors we encountered was when our payment gateway went down during a major promotional campaign, resulting in thousands of failed transactions and a significant loss of revenue. This experience taught us that we needed a more robust solution that could handle the demands of our growing user base.
The Architecture Decision
We decided to build our own payment processing system using a combination of cryptocurrency payments and a custom-built payment processing engine. We chose cryptocurrency payments because they are not subject to the same country-specific restrictions as traditional payment processors. Our payment processing engine was designed to handle transactions, manage refunds, and deal with chargebacks in a scalable and secure manner.
We used the Coingecko API to integrate cryptocurrency payments into our platform, allowing users to pay using Bitcoin, Ethereum, and other popular cryptocurrencies. Our payment processing engine was built using a combination of Node.js and PostgreSQL, with a custom-built payment gateway that integrated with our e-commerce platform.
What The Numbers Said After
After implementing our new payment processing system, we saw a significant improvement in our transaction success rate. We were able to reduce the number of failed transactions by over 90%, resulting in a substantial increase in revenue. Our payment processing engine was able to handle the volume of transactions we expected, and we no longer experienced downtime or errors.
According to our metrics, we saw a 25% increase in user acquisition and a 15% increase in average order value (AOV). These numbers demonstrate that our payment processing system was not only functional but also effective in driving business growth.
What I Would Do Differently
Looking back, I would approach our payment processing system in a more modular way. We could have broken down our system into smaller components, each responsible for a specific aspect of payment processing. This would have made our system more maintainable and easier to scale.
Additionally, I would have explored other cryptocurrency payment options, such as stablecoins, which offer greater stability and lower volatility than traditional cryptocurrencies. This would have given us more flexibility in managing our payment processing system and reduced the risk of market fluctuations affecting our business.
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