Should Xendit prioritize expanding our payment methods or improving the reliability of existing ones?

Introduction

The trade-off we're examining today is whether Xendit should prioritize expanding our payment methods or improving the reliability of existing ones. This decision is crucial for our growth strategy and customer satisfaction. I'll analyze this trade-off by considering our 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)

• Context: I'm assuming Xendit is facing increased competition in the payment space. Could you share our current market position and how it's trending?

Why it matters: Helps determine if expansion or reliability is more critical for maintaining market share. Expected answer: We're a top 3 player but losing ground to newer entrants. Impact on approach: Would lean towards expansion if we're falling behind, reliability if we're leaders.

• Business Context: Based on our revenue model, I'm thinking reliability might be tied to transaction fees. What percentage of our revenue comes from transaction fees versus other sources?

Why it matters: Helps prioritize reliability if it directly impacts our main revenue stream. Expected answer: 70% from transaction fees, 30% from value-added services. Impact on approach: High reliance on transaction fees would prioritize reliability improvements.

• User Impact: I'm guessing we have both merchant and consumer users. Which segment is experiencing more issues with our current payment methods?

Why it matters: Identifies which user group to prioritize in our decision. Expected answer: Merchants are reporting more reliability issues. Impact on approach: Would focus on reliability improvements for merchant-facing systems.

• Technical: Considering our current infrastructure, how complex would it be to integrate new payment methods compared to improving existing ones?

Why it matters: Assesses the technical feasibility and resource requirements for each option. Expected answer: New integrations are moderately complex, while improving reliability requires significant backend work. Impact on approach: Would influence the timeline and resource allocation for each option.

• Resource: Given our current team structure, do we have more expertise in integrating new payment methods or optimizing existing systems?

Why it matters: Determines if we have the right skills in-house for either option. Expected answer: We have a strong integration team but lack reliability experts. Impact on approach: Might lean towards expansion unless we can quickly acquire reliability expertise.