The Problem We Were Actually Solving
In hindsight, our main problem was that we had built our business model around Western payment systems, expecting them to work universally. This turned out to be a flawed assumption. We relied heavily on PayPal and Stripe for processing transactions, completely disregarding the realities of platform restrictions in countries with strict sanctions. Our users were caught in the middle, unable to purchase courses or donate to our project.
What We Tried First (And Why It Failed)
Initially, we thought we could bypass the blockade by using alternative platforms like Gumroad and Payhip. These services offered more flexible payment options, but they ultimately failed to work due to similar sanctions and restrictions. It became apparent that these platforms relied on international financial networks and payment processors that were also under sanction. We even tried using manual bank transfers and international card processing, but these methods were cumbersome and often failed. The end result was a payment system that worked about 10% of the time, which was unacceptable.
The Architecture Decision
After months of testing, we decided to build our own in-country payment system using local banking infrastructure. We partnered with a local Iranian bank that provided us with a custom-built payment processing system. This system allowed us to accept domestic Iranian Rials, facilitating transactions and minimizing the impact of international sanctions. It required significant investment in new infrastructure and a separate team to manage it, but it was the only way to ensure a working payment system for our users.
What The Numbers Said After
The new payment system significantly improved our transaction rates. We saw a 95% success rate for payments, which greatly reduced user frustration and allowed our project to survive. We also observed a notable increase in user engagement and course sales, as people could finally purchase and access our content without interruptions. However, the costs associated with operating a separate payment system were higher than expected, which forced us to rethink our pricing strategy and operating expenses.
What I Would Do Differently
If I were to go through this again, I would have invested more time in researching local payment options and partner banks before our project's user base grew in Iran. I would also have considered building a more modular and adaptable payment system from the start, which could have made it easier to switch to a local payment solution when sanctions hit. This experience taught me to be more aware of the complexities and risks associated with global payment systems and to prioritize building a more robust and region-agnostic financial infrastructure for my projects.
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