The Problem We Were Actually Solving
We were trying to onboard a large number of customers from countries with restricted payment gateways. Our current set up was costing us around 2.5% + $0.30 per transaction, which added up quickly. We needed a solution that could process payments with lower transaction fees and fewer restrictions.
What We Tried First (And Why It Failed)
We initially tried using a payment service provider that allowed us to integrate with local payment methods. However, their fees were just as high as the mainstream gateways, and their support was lacking. We also experimented with using cryptocurrencies like Bitcoin, but the volatility of the market made it difficult to set a stable price for our products. Furthermore, our customers weren't tech-savvy enough to navigate the world of cryptocurrency.
The Architecture Decision
After weeks of experimentation, we finally settled on using a combination of PAXOS protocol-based payment processing and a tokenized payment system. We partnered with a local bank in the restricted country to create a tokenized payment system that allowed customers to pay with their local currency. This solution not only bypassed the restrictions on mainstream payment gateways but also reduced our transaction fees to around 0.5% + $0.05 per transaction.
What The Numbers Said After
The numbers speak for themselves. After implementing the new system, our revenue increased by 25% in the first month, and our transaction fees decreased by over 70%. Our customers also reported a 30% decrease in the time it took to complete a transaction. As for pipeline latency, our new system was able to process transactions in under 2 seconds, which was significantly faster than our previous setup.
What I Would Do Differently
If I were to do this project again, I would invest more time in researching the local payment landscape and building relationships with local banks and payment providers. This would have saved us weeks of trial and error and allowed us to implement a more robust solution from the start. I would also consider using a more decentralized payment system, such as those based on blockchain technology, to further reduce our transaction fees and increase the security of our system.
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