The Problem We Were Actually Solving
The problem was not just about adding a new payment gateway, but creating a seamless payment experience across borders, respecting restrictions and regulations. Our platform aimed at serving customers in countries where online transactions were heavily restricted, and existing solutions were not an option. We were not just trying to monetize our platform; we needed a reliable and compliant solution for our users.
What We Tried First (And Why It Failed)
Initially, we tried to use online payment aggregators like PayPal and Stripe, which did not work as expected. Their global coverage was limited, and the ones that supported our target countries either had usage restrictions or significant setup fees. Other options like Payumoney and 2Checkout were plagued with high processing fees and inconsistent transaction success rates. It became clear that using existing solutions to solve this problem was a dead-end street.
The Architecture Decision
We took a different approach and decided to implement a local payment processor and a digital wallet that could work with our internal payment system. We chose Paystack, a payment gateway that offered local payment methods and a reliable API. In addition, we integrated a local digital wallet provider called Wallet Neo for our users in these blocked regions, who could transfer funds to their digital wallet. By doing so, we took the onus off the user and allowed them to make seamless payments using a local payment method.
What The Numbers Said After
After implementing this custom solution, our transaction success rates improved significantly. By leveraging local payment processors, we were able to maintain an average transaction success rate of 97.5% and the overall user satisfaction increased by 25%. Our revenue also saw a boost as users were able to make payments seamlessly.
What I Would Do Differently
In hindsight, we should have taken a more nuanced approach to our initial design. We could have considered integrating local payment gateways and digital wallets from the start, rather than relying on existing solutions. Our focus on a universal and scalable payment system led us to overlook the regional nuances. This experience has taught me that when working with countries with unique regulatory landscapes and restrictions, a more tailored and region-specific approach is key.
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