Should Adyen prioritize expanding its payment method offerings or improving existing integrations?

Introduction

The trade-off we're examining today is whether Adyen should prioritize expanding its payment method offerings or improving existing integrations. This decision is crucial for Adyen's growth strategy and market position in the competitive payment processing industry. I'll analyze this trade-off by considering the business context, user impact, technical feasibility, and resource allocation. Let's dive into the key aspects that will inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Based on Adyen's current market position, I'm thinking our existing integrations might be facing some challenges. Could you share any specific pain points or feedback we've received from merchants about our current integrations?

Why it matters: Helps prioritize which integrations need improvement Expected answer: Some issues with reliability or user experience Impact on approach: Would focus on improving critical integrations first

• Considering our revenue model, I assume we charge a percentage fee per transaction. Are we seeing any significant differences in profitability between various payment methods?

Why it matters: Influences the financial impact of expanding payment methods Expected answer: Some methods are more profitable than others Impact on approach: Would prioritize expansion of more profitable methods

• Looking at user behavior, have we noticed any trends in payment method preferences across different merchant segments or geographies?

Why it matters: Helps identify where expansion might have the most impact Expected answer: Varying preferences in different markets Impact on approach: Would target expansion in high-growth or underserved markets

• From a technical standpoint, how modular is our current integration architecture? Would expanding payment methods require significant changes to our core systems?

Why it matters: Affects the feasibility and timeline of expansion Expected answer: Moderately modular, some changes required Impact on approach: Would influence the balance between expansion and improvement

• Regarding our team capacity, do we have dedicated resources for both expansion and improvement initiatives, or would this decision require reallocating our existing team?

Why it matters: Impacts the feasibility of pursuing both strategies simultaneously Expected answer: Limited resources, need to prioritize Impact on approach: Would lean towards a phased approach, focusing on one area first