Improving Card Deposits Through a Strategic Integration
Background
As a crypto trading platform, Swyftx offered customers two primary methods for depositing fiat: bank transfer and card deposit. However, card deposits were managed through a third-party provider, which introduced several challenges. As the Product Manager newly responsible for the fiat on/off-ramping, I was focused on improving the efficiency of our core flows in line with the business strategy and objectives at the time.
Identifying the Problem
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Through continuous communication with our customer support team, investigation of customer support data, and analysis of our depositing and core flow funnels, we identified card depositing as a significant pain point for our users:
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Card deposits comprised less than 2% of all deposit volume.
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There were high drop-off rates in the card depositing flow.
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Issues related to card deposits ranked among the top 10 most common customer support inquiries.
Upon further investigation, we discovered several issues with our existing card deposit process:
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User Experience: Our current provider required users to leave our app to initiate a card deposit.
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KYC Verification: First-time depositors had to undergo a secondary KYC verification process on the 3rd party provider.
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Verification Challenges: New Zealand customers often faced verification issues, necessitating manual intervention.
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Currency Conversion: Funds received were in USD instead of AUD.
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High Fees: Card deposits incurred fees from 3-5% taken by the the third party.
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Compounding these issues, major banking institutions were imposing minimum 24-hour holds on non-card deposits to crypto businesses, increasing user demand for card deposits despite the aforementioned challenges.
Opportunity and Solution
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After extensive research, discussions, and comparisons with various card deposit providers, we chose to partner with Stripe, a global leader in financial infrastructure. Stripe's recent undertaking to work with crypto businesses posed an opportunity and their offering addressed almost all our existing issues:
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Provided an in-app card depositing experience.
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Eliminated repeated verification for users.
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Offered reduced fees, allowing us to add a margin and generate additional revenue.
The Intangible benefits also included Swyftx parterning with one of the worlds largest financial platforms, providing further trust and legitimacy in a low trust industry. As well as the potential to investigate further integrations with their platform, moving to an all in one solution for financial infrastructure.
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Implementation Process
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The implementation of Stripe involved a multifaceted approach:
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Design and Development:
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Collaborated with the product designer to create first-release designs for mobile and web platforms.
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Coordinated with the engineering manager to address technical issues and trade-offs as well leveraging Stripe's resources for accomodate the integration.
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Financial and Compliance:
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Partnered with the finance team to develop financial models and projections to secure CFO approval.
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Created product documentation to meet financial audit and ISO-20071 requirements.
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Marketing and Legal:
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Worked with Stripe, marketing, and legal teams to help with the multi-channel markeitng release and communications as well as updates to user T&C's.
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Customer Support and Training:
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Collaborated with the knowledge management lead to develop Help Centre articles and internal 'playbooks' for the customer support team.
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Conducted workshops and walkthroughs to equip the customer support and account management teams with the necessary knowledge to educate customers and troubleshoot issues.
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Fraud Prevention:
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Worked with the Financial Crime team to implement fraud detection and prevention measures.
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Results
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The integration of Stripe was successfully launched to our users, showing significant improvements in the six months post-release compared to the previous six months:
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Card deposits increased by ~90% in both count and volume (relative to total deposits).
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Customer support inquiries related to card deposits decreased by ~70%.
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The new solution generated additional revenue of approximately $160,000.