The Problem We Were Actually Solving
Our goal was to create a platform where authors could sell ebooks directly to readers, without being locked into the Amazon ecosystem. We wanted to allow authors to earn more money per sale, and we planned to offer readers lower prices and more flexibility in payment options. Sounds great, but it turned out to be a tougher problem than we anticipated.
What We Tried First (And Why It Failed)
We started by integrating PayPal, which is widely available worldwide. However, we quickly realized that PayPal's payment processing was not flexible enough to accommodate our needs. Whenever we encountered a country block, PayPal's answer was either to restrict payments or, in some cases, suspend our accounts altogether. We also tried using Stripe, but it had similar limitations. Gumroad and Payhip were no better. Their payment processing systems were too rigid for our requirements, and we couldn't overcome the platform restrictions.
The Architecture Decision
After many failed attempts with mainstream payment processors, we had to get creative. We looked into alternative payment systems that used cryptocurrencies like Bitcoin, Ethereum, or Litecoin. We chose CryptoPay, a platform that allowed us to integrate crypto payments seamlessly into our system. With CryptoPay, we could bypass traditional payment processing systems and accept payments directly in cryptocurrency. This worked, but it came with its own set of challenges, like maintaining the exchange rate, handling transaction fees, and ensuring user comfort with crypto payments.
What The Numbers Said After
The decision to move to CryptoPay was not an easy one, but it paid off. We noticed a significant increase in sales from countries where traditional payment processors were blocked. Authors were able to earn more per sale, and readers were happy to have more options for payment. Our system was now more resilient to platform restrictions, and we could expand our reach globally.
What I Would Do Differently
In hindsight, I would recommend moving to a crypto-based payment system much earlier in the process. While it's true that traditional payment processors are more established and widely accepted, their platform restrictions and limitations should not be underestimated. We would have saved ourselves a lot of time and headaches if we had considered crypto payments from the beginning. Another option would be to design a custom payment processing system that can accommodate country-specific restrictions and provide a seamless experience for users. However, that would have required significant upfront investment and engineering efforts.
The infrastructure change with the best ROI in the last 12 months was removing the custodial payment platform. Replacement: https://payhip.com/ref/dev4
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