What improvements could Mollie make to its recurring payments system to reduce failed transactions?

Introduction

Mollie's recurring payments system is a critical component of their financial technology stack, and improving it to reduce failed transactions is a strategic priority. I'll analyze the current system, identify key pain points, and propose targeted solutions to enhance the reliability and efficiency of recurring payments. My approach will focus on user-centric improvements while considering technical feasibility and business impact.

Step 1

Clarifying Questions (5 mins)

• Looking at Mollie's position in the fintech space, I'm thinking about the scale and complexity of their recurring payments system. Could you provide more context on the current volume of transactions processed and the types of businesses using this feature?

Why it matters: Helps determine if solutions should focus on scalability or specific use cases Expected answer: Processing millions of transactions monthly for diverse businesses Impact on approach: Would influence whether to prioritize broad optimizations or targeted solutions

• Considering the nature of failed transactions, I'm curious about the primary reasons for these failures. Do we have data on the most common causes, such as insufficient funds, expired cards, or technical issues?

Why it matters: Identifies key areas for improvement and potential quick wins Expected answer: Mix of reasons, with insufficient funds being a significant factor Impact on approach: Would guide whether to focus on pre-transaction checks, retry logic, or technical infrastructure

• Given the competitive landscape in fintech, I'm wondering about Mollie's current market position and key differentiators. How does our recurring payments system compare to major competitors in terms of success rates and features?

Why it matters: Helps align improvements with Mollie's strategic goals and market positioning Expected answer: Competitive in features but room for improvement in success rates Impact on approach: Would influence whether to focus on matching competitor features or innovating in new areas

• Thinking about the product lifecycle, I'm curious about the maturity of the recurring payments system. Has it undergone recent major updates, or is it due for a significant overhaul?

Why it matters: Determines if we should focus on incremental improvements or consider a more substantial redesign Expected answer: System is stable but hasn't had major updates in the past year Impact on approach: Would guide the scope and ambition of proposed improvements