The problem we were actually solving,
We're a small team of software developers in a country where popular online platforms like PayPal, Stripe, Gumroad, and Payhip are blocked. Our online course platform, which we'd built using Ruby on Rails and PostgreSQL, was facing a major hurdle: we couldn't receive payments from our customers. I was tasked with finding a solution that would allow us to sell our courses without relying on these restricted platforms.
What we tried first (and why it failed),
When we first encountered the restrictions, our instinct was to look for workarounds within the existing platforms. We tried using third-party payment gateways that promised to bypass the restrictions, but these solutions turned out to be flimsy at best. We'd spend hours setting up these gateways only to be locked out again a few days later, with no clear reason as to why. These attempts also introduced a significant amount of technical debt, as we'd have to constantly update our code to accommodate the shifting requirements of these third-party gateways. The technical complexities and maintenance nightmares made us realize that these workarounds weren't sustainable.
The architecture decision,
After exhausting our exploration of platform-based solutions, we turned to a more unconventional approach: using cryptocurrency to facilitate payments. We researched various cryptocurrency payment processing services like Bitpay and Coinbase Commerce, which allowed us to integrate a payment gateway directly into our course platform. We used a combination of these services and some clever routing logic to create a seamless payment experience for our customers. Our platform would redirect customers to a cryptocurrency payment page, where they could fund their purchases using their preferred cryptocurrency.
What the numbers said after,
At first glance, our new cryptocurrency-based payment system seemed to be a hit. Our course sales began to rise, and we were finally able to reach customers in restricted countries. However, as time went on, we encountered a new set of problems. Our analytics showed that the vast majority of our customers were using cryptocurrency because they had no other choice, not because they preferred it. We saw a significant increase in abandoned checkouts, likely due to the steep learning curve and uncertainties associated with cryptocurrency transactions. Our revenue growth started to slow down, and we realized that our reliance on cryptocurrency was creating more problems than it was solving.
What I would do differently,
In hindsight, I would explore alternative payment methods that don't rely on traditional platforms. Our research should have started with services like Mollie, Rapyd, or even PayPal's own "Instant Transfer" feature, which can help bypass some of the restrictions. These services often have better support and fewer restrictions than the more well-known payment platforms. By exploring these alternatives, we might have avoided the complications associated with cryptocurrency and created a more stable and user-friendly payment experience for our customers. Ultimately, our decision to rely on cryptocurrency highlights the importance of understanding the complexities of platform restrictions and the trade-offs associated with unconventional solutions.
