The Problem We Were Actually Solving
What my team and I were trying to solve was a rather simple problem: figure out how to sell our product to anyone, anywhere, without having to deal with the hassle of geoblocking. We'd seen similar issues with other digital sellers, so we knew we weren't the only ones fighting this battle. Our goal was to create a seamless checkout experience for our customers, no matter where they were located.
What We Tried First (And Why It Failed)
We initially thought that using a third-party payment gateway would be the solution. We set up Stripe and Braintree, integrated them with our platform, and tested everything. But, as it turned out, the payment gateways themselves were subject to the same geoblocking rules that were blocking our sales. We couldn't get through the initial hurdle of processing payments from restricted countries, so we had to explore other options.
Next, we tried to use cryptocurrencies like Bitcoin and Ethereum. These decentralized payment systems, we thought, would allow us to bypass the traditional payment gateways and their geoblocking rules. However, once we started using cryptocurrencies, we faced a different set of issues: extreme volatility in the market, regulatory uncertainty, and the difficulty of integrating these systems with our existing platform.
The Architecture Decision
After weeks of experimentation, we finally stumbled upon a solution: a combination of a global payment processor like Adyen and a custom-built payment retry system. Adyen, unlike traditional payment gateways, didn't block our sales based on geolocation, and its APIs allowed us to retry failed transactions with a different payment method. We built a custom system that would detect failed transactions and automatically retry them with a different payment method, increasing our chances of successful payment from restricted countries.
We had to weigh the pros and cons of using a global payment processor like Adyen. On the one hand, we had to pay a higher transaction fee compared to traditional payment gateways, which meant that our revenue per user would be lower. On the other hand, Adyen's payment retry system allowed us to avoid the risk of lost sales due to geoblocking, and its global reach enabled us to expand our customer base.
What The Numbers Said After
After implementing our new payment system, we saw a significant increase in sales from restricted countries. Over the course of six months, we managed to increase our revenue by 30% from customers located outside the United States. The data showed that geoblocking was a major barrier to sales, and by finding a solution to this problem, we were able to tap into a previously untapped market.
What I Would Do Differently
If I were to redo our project, I would focus on integrating our payment system with multiple payment gateways and processors from the outset. This would have saved us weeks of development time and allowed us to explore different solutions more efficiently. I would also invest more time in understanding the nuances of global payment processing and geoblocking, as this knowledge would have helped us avoid the pitfalls we encountered along the way.
In the end, we succeeded in creating a seamless checkout experience for our customers, no matter where they were located. But it wasn't an easy journey, and we learned that sometimes the most seemingly intractable problems require creative solutions and an understanding of the complexities involved.
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