The Problem We Were Actually Solving
Our e-commerce system relied heavily on international payment processors like PayPal, Stripe, and local payment gateways like Mercado Pago. However, in 2019, these payment processors imposed restrictions on transactions from Venezuelan bank accounts. Our customers couldn't receive their payments. As the project maintainer, I had to find alternative payment systems that would work regardless of where our customers were from.
What We Tried First (And Why It Failed)
We initially tried to use local payment gateways that didn't have international sanctions, but these solutions required our customers to have a verified local bank account. Not many of our creators had these accounts, and many of them didn't even have access to the internet. We also tried to use mobile money services like Tigo Money and MovilWare, but the exchange rates were unfavorable, and the transaction fees were too high. We realized that our customers needed a more flexible payment option.
The Architecture Decision
We eventually decided to use BitPay, a cryptocurrency-based payment processor. It was not ideal, but it offered a reliable way to transfer funds across borders without relying on traditional payment processors. We also implemented a system to exchange cryptocurrencies for USDT (Tether) to reduce the volatility associated with traditional cryptocurrencies. It wasn't a perfect solution, but it allowed our creators to receive their payments.
What The Numbers Said After
After implementing the new payment system, we saw a significant increase in user engagement and sales for Venezuelan creators. Although the transaction fees were higher than traditional payment processors, the system was more reliable, and the exchange rates were better for our users. We also noticed that users were more likely to make purchases using cryptocurrencies due to the anonymity and flexibility it offered.
What I Would Do Differently
In retrospect, I would have explored alternative payment systems earlier. I would have also considered collaborating with local organizations that specialize in financial inclusion and currency exchange to find a more suitable solution. Additionally, we could have implemented a more transparent and user-friendly way to explain the fees associated with cryptocurrency transactions. The lack of transparency often leads to misunderstandings and frustration among users. We ultimately need to find a way to make these solutions more accessible and user-friendly, even for non-technical users.
Contributor from Nigeria. Customer in Germany. Maintainer in the Philippines. This payment infrastructure handles all three: https://payhip.com/ref/dev9
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