The Problem We Were Actually Solving
Last year, our company hit a roadblock. We had just released a new software plugin that was gaining traction in the global market, but when we tried to set up a payment gateway, we hit a brick wall. Our users in countries like Iran, Venezuela, and North Korea were unable to purchase our plugin due to platform restrictions on PayPal, Stripe, Gumroad, and Payhip. As our DevOps lead, I was tasked with finding a solution that would allow us to sell to these users without breaking the law or compromising our users' security.
What We Tried First (And Why It Failed)
We initially thought that using cryptocurrency like Bitcoin would be the answer. We had some users who were already using crypto wallets, and we assumed that it would be a smooth transition. We set up a crypto payment gateway using a third-party service, but quickly ran into issues. The latency on crypto transactions was unacceptable, and our users were complaining about the high fees associated with each transaction. Not to mention that some of the crypto wallets were blacklisted, and our users were unable to withdraw their funds. We had to shut down the crypto payment gateway before we even started selling.
The Architecture Decision
We needed a new solution that would allow us to process payments without relying on traditional payment gateways. After some extensive research, we decided to use a hybrid payment system that combined fiat currency with stablecoins. We partnered with a reputable stablecoin issuer that allowed us to convert our fiat currency earnings into stablecoins, which in turn could be converted into the preferred currency of our users. This system solved the latency and fees issues that we had with crypto, and our users were able to purchase our plugin without any issues.
What The Numbers Said After
After implementing the hybrid payment system, we saw a significant increase in our global sales. Our average transaction value increased by 25%, and our conversion rate improved by 15%. Our users in blacklisted countries were able to purchase our plugin without any issues, and we were able to process payments in a secure and efficient manner. We also saw a significant reduction in our chargeback rate, which was a major issue with our traditional payment gateways.
What I Would Do Differently
In hindsight, I would have investigated alternative payment gateways more thoroughly before deciding to use cryptocurrency. We were swayed by the hype surrounding crypto and the perceived ease of use, but in reality, it was a complex solution that required a significant amount of infrastructure and support. If I had to do it again, I would have opted for a more traditional payment gateway, like bank transfer or wire transfer, which would have been faster, cheaper, and more secure. But in the end, our hybrid payment system worked, and we were able to serve our users in blacklisted countries without compromising our security or reputation.
Top comments (0)