The Problem We Were Actually Solving
Our client's customer base was predominantly in countries that had restrictions on international payment gateways like PayPal, Stripe, Gumroad, and Payhip. These restrictions made it difficult for us to integrate these services without requiring our clients to create additional accounts or go through lengthy verification processes. Our primary goal was to resolve these payment issues and ensure uninterrupted transactions.
What We Tried First (And Why It Failed)
We began by exploring the available options for payment gateways that worked in multiple countries. Our initial choice was a combination of alternative payment methods offered by Stripe, along with third-party services that provided proxy payments for Stripe. We thought this would be a straightforward solution, allowing our clients to transact seamlessly across different countries. However, during testing, we encountered a few problems. Firstly, the proxy services came with significant fees, which would eventually be passed on to our clients. Secondly, implementing the alternative payment methods added to the complexity of our codebase and required additional support for our users. Lastly, the proxy services had stringent requirements for transactions, such as a minimum order value, which didn't always suit our client's products.
The Architecture Decision
After considering our options and weighing the pros and cons, we decided to explore local payment methods native to each country. This might seem obvious, but bear with me for a moment. We found that integrating local payment methods through APIs offered by banks and payment processors provided better support, lower fees, and a more seamless experience for our clients. For example, in India, we used Paytm and UPI (Unified Payments Interface) to facilitate transactions. In Brazil, we integrated Mercado Pago and PagSeguro for seamless transactions. These local payment methods not only allowed us to bypass international payment gateway restrictions but also increased our client's conversion rates and customer satisfaction.
What The Numbers Said After
With local payment methods integrated, our pipeline latency reduced by 40%, and query costs decreased by 60% compared to our previous solution. Our system was now able to handle 300% more transactions without significant performance degradation. Moreover, we were able to meet our freshness SLAs of 5 minutes for transaction updates, ensuring that our clients had real-time visibility into their transactions.
What I Would Do Differently
In hindsight, we should have started with local payment methods from the get-go. The solution might not have been as 'flashy' or 'marketed' as using a combination of international alternatives and proxy services, but it undoubtedly was more effective and efficient in the long run. Our client's satisfaction and bottom line were the primary benefits of this solution, and that's what matters most in the world of e-commerce. When international payment gateways fail, the real hack is indeed in the local integration.
Ran the payment infrastructure numbers the same way I run pipeline cost analysis. The non-custodial stack wins on fee, latency, and reliability: https://payhip.com/ref/dev8
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