Should Kushki prioritize expanding its payment gateway to more Latin American countries or focus on deepening features for existing markets?

Introduction

The trade-off question at hand is whether Kushki should prioritize expanding its payment gateway to more Latin American countries or focus on deepening features for existing markets. This scenario involves balancing geographic expansion against product depth, a common challenge for growing fintech companies. I'll analyze this trade-off by examining market opportunities, user needs, technical considerations, and strategic alignment.

Step 1

Clarifying Questions (3 minutes)

• Based on Kushki's current market presence, I'm thinking there might be significant untapped potential in other Latin American countries. Could you provide an overview of our current market share and penetration in existing countries?

Why it matters: Helps assess the growth potential in current markets vs. new ones. Expected answer: Strong presence in 2-3 countries, moderate in others. Impact on approach: Low penetration would favor deepening features, high penetration expanding to new markets.

• Considering our revenue model, I'm assuming we operate on a transaction fee basis. Can you confirm our primary revenue streams and how they differ across markets?

Why it matters: Different revenue models might favor expansion or feature development. Expected answer: Primarily transaction fees, with some subscription elements. Impact on approach: If revenue varies significantly by country, it could influence expansion strategy.

• Looking at user segments, I'm thinking about the diversity of payment methods across Latin America. How do user preferences for payment types vary in our current markets versus potential new markets?

Why it matters: Informs whether new features or new market entry would better serve user needs. Expected answer: Significant variation in payment preferences across countries. Impact on approach: High variation would support expansion to cater to diverse needs.

• From a technical perspective, I'm curious about the scalability of our current platform. How much additional development would be required to enter new markets versus adding new features?

Why it matters: Assesses the technical effort required for each option. Expected answer: Moderate effort for new markets, significant for new features. Impact on approach: Lower technical barriers for expansion might favor that option.

• Regarding our team capacity, I'm wondering about our current resource allocation. How are our product and engineering teams currently split between maintenance, new feature development, and market expansion efforts?

Why it matters: Helps understand our ability to execute on either option. Expected answer: Majority on maintenance and new features, small team on expansion. Impact on approach: Limited expansion resources might favor focusing on existing markets.