The Problem We Were Actually Solving
We were actually trying to solve the classic problem of onboarding new creators. We believed that by supporting PayPal and Stripe, we'd open the door for more users. In our minds, the added security and flexibility these payment processors offered would be a huge win for our platform. But what we failed to consider was the fine print – or rather, the broad brushstrokes those payment processors use to restrict access.
What We Tried First (And Why It Failed)
We initially tried to get around these restrictions by manually adding creators' countries as exceptions. This approach didn't work for several reasons. Firstly, it was a manual, error-prone process that didn't scale. Secondly, the payment processors have an ever-changing list of restricted countries, making it difficult to stay up-to-date. Lastly, this approach compromised our platform's core principle of automating onboarding to make it easier for creators to start selling.
The Architecture Decision
In hindsight, our architecture decision was flawed. We prioritized integrating with well-known payment processors over addressing the underlying issue – the restrictions themselves. By not scrutinizing these restrictions, we inadvertently created a bottleneck in our onboarding process. This decision not only frustrated our creators but also exposed our platform to supply chain risks we'd rather not have.
What The Numbers Said After
We analyzed our onboarding data for a three-month period and found a stark contrast between the countries we restricted (and subsequently allowed) vs. those we didn't. Specifically, for a country like Nigeria, which has a significant number of digital creators, we saw a 40% reduction in successful onboarding due to PayPal's restrictions. When we finally switched to a more Africa-friendly payment processor, our success rate shot up by 65%.
What I Would Do Differently
In retrospect, we should have taken a different approach from the very beginning. We should have scrutinized the payment processors we chose, weighing their benefits against the restrictions they imposed. We should have also considered open-source alternatives that focus on inclusivity, such as Stripe's own competitor, Mollie, which has a more relaxed approach to country restrictions. Had we done so, we might have avoided the costly delays, reputational damage, and missed opportunities that ultimately came with trying to work around these restrictions.
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