The Problem We Were Actually Solving
As a senior platform engineer at a digital product marketplace in Iran, I faced a seemingly insurmountable challenge: our e-commerce platform had been blacklisted by several payment processors due to Iranian sanctions. We were a legitimate business, but our presence was being suffocated by overzealous compliance policies. Our goal was to create a seamless checkout experience for customers, while navigating the complexities of restricted payment methods. We were stuck between the need to comply with regulations and the imperative to keep our business afloat.
What We Tried First (And Why It Failed)
We began by exploring traditional payment gateways that offered support for international transactions. However, these gateways required extensive vetting, including Know Your Customer (KYC) verifications for merchants and customers. The problem was that our KYC-compliant payment methods were only available to customers residing in specific countries, effectively creating a gatekeeper barrier for our customers in restricted nations. We tried to work around this limitation by using alternative payment processors, but they either had similar restrictions or were too small to scale for our needs.
The Architecture Decision
We realized that our only viable option was to bypass traditional payment gateways altogether and develop custom, no-KYC payment methods. We used a combination of blockchain-based payment processing and local payment methods to facilitate transactions. For example, we integrated a popular Iranian payment processor, Parsian, which allowed customers to pay using their local debit card. We also implemented a cryptocurrency payment gateway to cater to customers who held cryptocurrencies like Bitcoin. This new architecture not only enabled us to serve customers in restricted countries but also provided a more direct and transparent payment experience.
What The Numbers Said After
Our decision to implement no-KYC payment methods proved to be a resounding success. Within a month of deployment, we witnessed a 30% increase in transaction volume from customers using Parsian, and a 25% increase from cryptocurrency payments. Our conversion rates also improved significantly, thanks to the streamlined checkout experience. But more importantly, we were able to serve customers who would have otherwise been excluded by traditional payment gateways.
What I Would Do Differently
In retrospect, I would have explored no-KYC payment methods earlier in the process. Our initial focus on traditional payment gateways unnecessarily slowed down our development timeline and limited our growth prospects. I would also prioritize integrating multiple local payment processors from the outset to ensure that customers in restricted countries have a range of payment options available to them. This approach would have provided a more scalable and resilient payment infrastructure from the start, making it easier to adapt to changing regulatory requirements and customer needs.
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