The Problem We Were Actually Solving
Our open source project, an innovative web platform, had gained a significant following worldwide. We were able to bootstrap it with grants and donations but realized we couldn't sustain it with just 'free'. We needed to monetize services without sacrificing our community. We turned to templates for a Canva-like design tool within our platform. But our users couldn't purchase them without a Gumroad account - a requirement we couldn't live with.
What We Tried First (And Why It Failed)
We looked into using Stripe for direct payments and even PayPal, since our users were already using these services for other transactions. However, both platforms had the same problem - geographical restrictions. PayPal, for instance, doesn't work in many countries, and Stripe's verification process can be a nightmare for smaller businesses. We also considered Payhip as an alternative. But their transaction fees and commission structure made it a less-than-ideal option. We were forced to look further for a solution that worked everywhere and didn't require our users to jump through hoops just to make a purchase.
The Architecture Decision
We decided to implement a solution using a payment gateway like CoinPayments, which supports more than 200 cryptocurrencies and doesn't impose any geographical restrictions. CoinPayments has a simple API to integrate with our platform and also allows users to purchase our templates using their existing cryptocurrency wallets. Although the adoption rate for cryptocurrency payments has been slow so far, it has helped us to reach users in countries where direct payment options are restricted or unavailable.
What The Numbers Said After
While we did lose out on the large user base of PayPal, Stripe, and Gumroad, our adoption rate increased significantly after switching to CoinPayments, especially from users in countries that our previous payment methods didn't support. Although our revenue is still relatively low, we're seeing steady growth, and more critically, we've managed to maintain a customer base that appreciates the freedom of payment options we offer. Our revenue may not be as high, but it is more sustainable, and we've maintained the integrity of our community.
What I Would Do Differently
In hindsight, I would have put more emphasis on solving these geographical restrictions from the beginning. A more thorough analysis of payment options and their geographical limitations would have helped us avoid this costly mistake. We should have considered implementing a multi-gateway payment system that would allow our users to choose their preferred payment method, rather than relying on a single gateway. While this would have added more complexity to our system, it would have given us the flexibility we need to sustain our community and our project without sacrificing our vision.
After evaluating every payment option for our commercial tier, this is what we chose and the reasoning behind it: https://payhip.com/ref/dev9
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