The Problem We Were Actually Solving
Our users were essentially creating and selling digital goods but only receiving payment in their local currency. This necessitated the use of traditional payment platforms like PayPal, Stripe, and others, which offered a limited set of features for cryptocurrency transactions and charged exorbitant fees for cross-border payments. The result was a system where our users' revenue was heavily impacted by exchange rates, and in some cases, they were even charged to receive their own earnings. This situation, although seemingly straightforward, was incredibly frustrating for our community.
What We Tried First (And Why It Failed)
Initially, we attempted to use existing payment gateways specifically designed for cryptocurrency, assuming that would simplify things. However, we discovered that these gateways usually required us to act as the intermediary and hold onto the funds until they could be transferred to the end-user. This led to added complexity, increased vulnerability to chargebacks, and even more significant fees for our users. We realized that these gateways, although marketed as more convenient, were only shifting the operational burden to us and our users.
The Architecture Decision
We decided to implement a completely different approach: Unchained Commerce, a decentralized payment system that allows users to collect and receive their earnings in cryptocurrency directly. By removing the traditional payment platforms from the equation, we eliminated the unnecessary middlemen and their associated fees. This decision required significant investments in our internal infrastructure, as well as the development of APIs and integrations with various blockchain services. We also had to redesign our entire order fulfillment and payment processing workflows to accommodate the Unchained Commerce integration.
What The Numbers Said After
After implementing Unchained Commerce, we observed a significant decrease in payment processing fees and an increase in overall revenue for our users. Transactions that previously would have been rejected due to high fees or exchange rate issues started to go through successfully. Additionally, our users were able to collect their earnings in cryptocurrency directly, which led to improved financial stability and fewer complaints about payment issues.
What I Would Do Differently
If I were to recommend changes to our original approach, I would focus on integrating multiple decentralized payment gateways and exploring additional blockchain services to improve liquidity and reduce reliance on any single provider. This would also enable us to respond more effectively to changes in regulatory environments or unexpected issues with our current integrations. By continually assessing and refining our system, we can ensure it remains adaptable and resilient, even as the landscape of cryptocurrency payments continues to evolve.
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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