What factors are causing the sudden 30% increase in failed transactions for Flywire's healthcare payment solution this month?

Introduction

The sudden 30% increase in failed transactions for Flywire's healthcare payment solution this month is a critical issue that demands immediate attention. As we delve into this product execution problem, I'll employ a systematic approach to identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a recent system change. Has there been any significant update to the payment processing system in the last month?

Why it matters: System changes often correlate with performance issues. Expected answer: Yes, a new payment gateway was integrated. Impact on approach: If confirmed, we'd focus on integration issues and compatibility.

• Considering user segments, I'm wondering if this is widespread or localized. Are we seeing this increase across all healthcare providers or is it concentrated in specific regions or types of institutions?

Why it matters: Helps narrow down potential external or regional factors. Expected answer: The issue is more prevalent in small to medium-sized clinics. Impact on approach: We'd investigate factors specific to smaller healthcare providers.

• Given the nature of healthcare payments, I'm curious about seasonality. Is there typically a fluctuation in transaction volume or types during this time of year?

Why it matters: Seasonal changes could explain unusual patterns. Expected answer: No significant seasonal changes expected. Impact on approach: We'd rule out seasonality and focus on other factors.

• Thinking about the metric itself, I want to ensure we're comparing apples to apples. Has there been any change in how we define or measure "failed transactions" in the past month?

Why it matters: Metric definition changes can create false alarms. Expected answer: No changes to the metric definition. Impact on approach: We'd focus on actual performance issues rather than measurement discrepancies.