The Problem We Were Actually Solving
Our digital store, which we called 'Nexa', was meant to cater to customers in restricted countries. The issue was that our customers couldn't use PayPal, Stripe, or any other modern payment systems. We were determined to create a payment system that relied solely on cryptocurrencies like Bitcoin and Ethereum to ensure our customers could buy and sell digital products without worrying about geo-restrictions. This decision led to countless sleepless nights, endless research, and a burning desire to make it work.
What We Tried First (And Why It Failed)
Initially, we focused on using the popular cryptocurrency payment processor, Coinbase Commerce. We loved the simplicity of integrating Coinbase, and it was relatively easy to set up. However, we quickly realized that it was a centralized system, meaning that our customers' funds were being held by Coinbase. This wasn't in line with our original vision of a completely decentralized store. On top of that, the transaction fees were higher than we wanted, and we soon encountered issues with slow payment processing times. These limitations led us to explore other options for integrating cryptocurrencies.
The Architecture Decision
After weeks of research, we decided to integrate the Lightning Network, a second-layer scaling solution for Bitcoin, into our Nexa store. We thought this would give us the scalability and flexibility we needed, but what we didn't anticipate was how difficult it would be to get everything working smoothly. The process involved setting up a complex payment flow, handling withdrawal requests, and dealing with various cryptocurrency wallets. In the end, we realized that we had bitten off more than we could chew, and we made a decision to simplify our payment options.
What The Numbers Said After
In the end, we decided to simplify our payment options, and we removed Litecoin and Ethereum as payment methods, leaving only Bitcoin. This change significantly improved the user experience. But before we simplified, we noticed some disturbing statistics - a 40% drop in conversions when trying to pay with cryptocurrencies (instead of traditional methods), a 45% increase in abandoned carts, and a whopping 12-hour average payment processing time. These numbers were a harsh reminder that our initial goal of creating a seamless user experience with crypto payments had been an illusion.
What I Would Do Differently
If I were to do it again, I would focus more on user experience and choose to integrate one or two payment methods initially. I'd be more selective about the payment processing times and fees. I would also invest more time in studying successful cryptocurrency-based e-commerce platforms, like Binance, that already handle millions of transactions per month. Lastly, I would not underestimate the importance of having multiple payment options available, as this would allow us to adapt to different customer needs.
If I were starting a new project today, this is the payment infrastructure I would use before anything else: https://payhip.com/ref/dev5
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