Why has the average processing time for Yoco merchant payouts doubled in the last quarter?

Introduction

The doubling of average processing time for Yoco merchant payouts in the last quarter is a critical issue that demands immediate attention. This problem directly impacts our merchants' cash flow and could potentially harm our reputation and customer satisfaction. I'll approach this analysis systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been a recent system change. Have there been any significant updates to our payout processing system in the last quarter?

Why it matters: System changes often lead to unexpected performance issues. Expected answer: Yes, there was a major update to our payment gateway. Impact on approach: If confirmed, I'd focus on post-update system performance and potential rollback options.

• Considering the scale of the issue, I'm wondering about the consistency of this increase. Is the doubling of processing time uniform across all merchant segments, or are certain types of merchants more affected?

Why it matters: This helps identify if the problem is systemic or specific to certain user groups. Expected answer: The increase is more pronounced for high-volume merchants. Impact on approach: I'd prioritize investigating factors specific to high-volume transactions.

• Given the nature of payouts, I'm curious about any changes in transaction volumes. Has there been a significant increase in the number or value of transactions processed during this period?

Why it matters: Increased load could explain longer processing times. Expected answer: Transaction volumes have increased by 30% in the last quarter. Impact on approach: I'd focus on scalability issues and potential bottlenecks in our system.

• Thinking about external factors, I'm considering potential changes in our banking partners' systems. Have we received any notifications from our banking partners about changes or issues on their end?

Why it matters: External dependencies can significantly impact our processing times. Expected answer: No major changes reported by banking partners. Impact on approach: If confirmed, I'd shift focus to internal factors and our integration points.