We’ve been planning on using Braintree Financial’s gateway, vault and APIs to power our payment processing routines for Genlighten’s back-end. But they’ve grown selective about working with tiny startups, and merchant banks apparently don’t like to do business with what they call “Third-Party Payment Aggregators” (TPPAs), so Braintree’s CEO strongly suggested we try an alternative approach.
That led to an intense day of studying PayPal’s “Web Payments Pro” offering. It appears to have some real advantages (they don’t mind dealing with small startups) and some significant disadvantages (charges even when clients cancel a lookup, higher fees to transfer money to providers). After reviewing our options, it now looks as if we’ll have to go with PayPal until we generate enough revenue and transaction volume to qualify for a better deal elsewhere.
While it was scary to have to deal with this when Justin had already put in lots of work on the Braintree interface, I felt confident in assessing our options, making a decision, and moving forward. These kinds of tests are what it means to be an entrepreneur — tough, but tremendously rewarding.
Takeaways from Braintree’s lack of interest in us? Momentum’s important!
- Momentum is mass * velocity
- velocity => get your startup up and running quickly
- mass => commit to it full-time
- When you’re demonstrating momentum, people take you seriously
- We may have to embrace some non-ideal approaches to get things moving