333 lines
13 KiB
Markdown
333 lines
13 KiB
Markdown
# Clavitor — Global Recurring Payment Infrastructure Plan
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*Last updated: March 2026*
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---
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## Executive Summary
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**Strategy:** Two primary partners, regional satellites. Stripe for card-present markets + developed economies. Paddle or Lemon Squeezy for tax compliance and emerging market coverage. Local payment orchestration for Africa, South Asia, and LATAM where cards fail.
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**Coverage:** 180+ countries, excluding Russia and China by policy.
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**Key insight:** In Nigeria, Bangladesh, Pakistan, and much of Africa/LATAM, credit card penetration is <5%. Mobile money, bank transfers, and carrier billing dominate. A "global" plan that only accepts cards is not global.
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---
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## Tier 1: Primary Infrastructure (The Core Stack)
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### Partner 1: Stripe
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**Role:** Card processing, subscriptions, developed markets, API infrastructure.
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**Why Stripe:**
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- Best-in-class subscription APIs (Billing, Checkout)
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- Strongest fraud prevention (Radar, 3D Secure)
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- Developer experience is unmatched
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- Supports 135+ currencies
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- Embeddable pricing tables and customer portal
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**Markets (Stripe dominates):**
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- North America (US, Canada)
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- Western Europe (UK, DE, FR, NL, ES, IT, etc.)
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- Australia, New Zealand, Japan, Singapore, Hong Kong
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- Eastern Europe (Poland, Czech Republic, etc.)
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- Most of LATAM (Mexico, Brazil, Chile, Argentina — with local card schemes)
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- India (with some local method support)
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**Limitations:**
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- No native mobile money (M-Pesa, MTN, etc.)
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- Weak in Sub-Saharan Africa outside South Africa
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- No carrier billing
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- Bangladesh, Pakistan: cards only, no local bank transfer support
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- Nigeria: cards work but ~70% fail due to bank restrictions
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**Implementation:**
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```
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Stripe Checkout (hosted) for < $100/month plans
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Stripe Elements (embedded) for enterprise/annual
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Stripe Billing for subscription lifecycle
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Stripe Tax for EU VAT, US sales tax (where required)
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```
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---
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### Partner 2: Paddle or Lemon Squeezy
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**Role:** Merchant of record (MOR), tax compliance, emerging market coverage, local payment methods.
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**Decision point:** Paddle vs. Lemon Squeezy
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| Factor | Paddle | Lemon Squeezy |
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|--------|--------|---------------|
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| Pricing | 5% + 50¢ per transaction | 5% + 50¢ per transaction |
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| MOR coverage | 100+ countries | 50+ countries |
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| Local methods | Strong (PayPal, Apple Pay, Google Pay, wire, Alipay in some regions) | Stronger on PayPal, weaker on wires |
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| Africa coverage | Limited | Limited |
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| India | Good | Good |
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| Pakistan/Bangladesh | PayPal, cards only | Same |
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| Nigeria | PayPal, some card coverage | Similar |
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| API quality | Mature, well-documented | Newer, improving |
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| Checkout UX | Hosted, customizable | Beautiful, opinionated |
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| Marketplace/airport model | Yes | No (direct only) |
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**Recommendation: Paddle** — specifically for the MOR coverage and the ability to handle "airport" sales (someone buys in Nigeria while traveling, pays from a German account).
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**Why not just Stripe + Paddle?**
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- Paddle's API is slower, less flexible than Stripe
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- Paddle's checkout is hosted — you lose some UX control
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- Paddle takes 5% vs Stripe's 2.9% + 30¢
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**The split:**
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- Stripe: Card-present markets, enterprise sales, API-driven purchases
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- Paddle: Self-serve customers in emerging markets, tax compliance for EU/UK/US
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---
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## Tier 2: Regional Satellites (Where Cards Fail)
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### Africa: M-Pesa, MTN Mobile Money, Airtel Money
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**Challenge:** In Kenya, Tanzania, Uganda, Ghana, mobile money is 80%+ of digital payments. Cards are rarely used.
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**Partner: DPO Group (now Network International) or Flutterwave**
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**DPO Group:**
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- Covers 20+ African markets
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- Aggregates M-Pesa, MTN, Airtel, plus cards
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- PCI compliant
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- Recurring support via tokenization (user approves repeat payment on mobile)
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**Flutterwave:**
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- Nigerian-founded, strong in West Africa
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- Supports M-Pesa, mobile money, bank transfers, cards
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- "Subscription" product exists but is newer
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- Better developer experience than DPO
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**Recommendation: Flutterwave** for primary African coverage.
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**Implementation model:**
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```
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User selects country →
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If Kenya/Ghana/Nigeria/Tanzania → Flutterwave checkout
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If South Africa → Stripe (cards work well)
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If other Africa → Paddle (PayPal fallback) or Flutterwave
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```
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**Critical note on recurring:** Mobile money subscriptions work differently. User gets an SMS to approve each monthly charge. This is not "set and forget" like cards. UX needs to explain: "We'll send you a monthly SMS to confirm. Reply YES to continue."
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---
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### South Asia: India, Pakistan, Bangladesh
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**India:** Stripe works well. UPI (Unified Payments Interface) is critical. Stripe added UPI support in 2023. Razorpay is the local leader if Stripe fails.
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**Pakistan:**
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- Cards: ~10% penetration, high fraud, high decline rates
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- Bank transfers: HBL, UBL, other major banks
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- Mobile wallets: JazzCash, Easypaisa dominate
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**Partner: Payoneer, Wise, or local aggregator**
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Realistic options:
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- **Payoneer Checkout:** Covers Pakistan, Bangladesh, supports local bank debits
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- **2Checkout (Verifone):** Mature, supports Pakistan, but high fees (6%+)
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- **Local partner:** Easypaisa/JazzCash APIs for Pakistan — requires local entity
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**Recommendation for Pakistan/Bangladesh:**
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- Start with Paddle (PayPal + cards)
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- Add Payoneer Checkout for local bank support
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- Long-term: evaluate Easypaisa direct integration if volume justifies local entity
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**Bangladesh:**
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- bKash is the mobile money giant (45M+ users)
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- Cards: ~5% penetration
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- Bank transfers: growing
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**bKash integration:** Requires Bangladesh Bank approval, local entity. Not feasible for MVP.
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**Short-term:** Paddle or Payoneer for card + PayPal coverage. Acknowledge that Bangladesh is "card and PayPal only" until volume justifies bKash integration.
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---
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### Southeast Asia: Indonesia, Philippines, Vietnam
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**Indonesia:**
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- Cards work in Jakarta/Bali. Elsewhere: bank transfers, OVO, GoPay, DANA (e-wallets)
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- Xendit is the leading local aggregator
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**Philippines:**
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- GCash and Maya dominate (90%+ of digital payments)
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- Cards work but high fraud
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**Partner: Xendit**
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- Covers Indonesia, Philippines, Vietnam
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- Supports OVO, GoPay, GCash, Maya, bank transfers, cards
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- Recurring support via tokenization
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**Recommendation:**
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- Tier 1 cities: Stripe (cards)
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- Tier 2+ and general population: Xendit
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**Implementation:**
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```
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If country = ID/PH/VN →
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Xendit checkout with local wallets
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Fallback to Stripe for cards
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```
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---
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### Middle East: UAE, Saudi Arabia, Egypt
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**UAE/Saudi:** Stripe works. Cards are common. Apple Pay/Google Pay growing.
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**Egypt:**
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- Cards work (limited penetration)
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- Fawry (cash network) is massive — pay at any Fawry kiosk
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- Vodafone Cash (mobile wallet)
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**Partner: Fawry or Paymob**
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- Paymob is Egyptian, supports Fawry, Vodafone Cash, cards, bank installments
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- Recurring: tricky. Fawry is cash-based. Paymob can tokenize for wallets.
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**Recommendation:**
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- UAE/Saudi: Stripe primary
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- Egypt: Paymob if volume justifies, otherwise Paddle (PayPal + cards)
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---
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## The Consolidated Stack (Minimal Partners)
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| Partner | Markets | Methods | Role |
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|---------|---------|---------|------|
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| **Stripe** | 40+ developed | Cards, SEPA, UK faster payments, Apple/Google Pay, UPI (India) | Core API, subscriptions, enterprise |
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| **Paddle** | 100+ (MOR) | Cards, PayPal, Apple Pay, bank transfers (limited) | Tax compliance, self-serve global fallback |
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| **Flutterwave** | 20+ Africa | M-Pesa, MTN, Airtel, cards, bank | Africa mobile money |
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| **Xendit** | ID, PH, VN | OVO, GoPay, GCash, Maya, cards, bank | SE Asia e-wallets |
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| **Payoneer** | PK, BD, global | Local bank debits, cards, PayPal | Pakistan, Bangladesh local coverage |
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**Total partners: 5.** Could reduce to 4 if Xendit and Flutterwave merge efforts (not currently possible).
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**Could go to 3?** Only if you accept that Pakistan, Bangladesh, and parts of Africa are "cards and PayPal only" at launch. That's a business decision — acceptable for MVP, limiting for scale.
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---
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## Recurring Payment Mechanics by Region
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### Card-based (Stripe, Paddle)
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- Standard: Customer agrees, token stored, charged monthly
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- Failed charges: Retry logic, dunning emails, grace periods
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- Cancellation: Self-serve portal
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### Mobile Money (Flutterwave, M-Pesa)
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- Model: "Consent-based recurring"
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- Flow: User approves first payment. For renewals, SMS sent: "Clavitor wants to charge $12. Reply YES to approve."
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- Churn: Higher than cards (users forget to reply, change numbers)
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- UX requirement: Explain the SMS flow upfront. Don't surprise users.
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### E-wallets (Xendit, OVO, GCash)
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- Model: Tokenized recurring where supported
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- Some wallets: Monthly approval required (like mobile money)
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- Status: Varies by wallet. Xendit abstracts this.
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### Bank transfers (SEPA, UK, local)
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- Model: Invoice or direct debit
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- SEPA direct debit: Strong authorization required, 8-week refund window
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- UK Direct Debit: Bacs, 3-day settlement
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- Local (Pakistan, Bangladesh): Push payment — user must initiate each time. Not truly "recurring."
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---
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## Tax and Compliance
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### Merchant of Record vs. Self-Filing
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**Option A: Paddle or Lemon Squeezy as MOR**
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- They collect, remit VAT/GST/sales tax
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- You receive net revenue
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- Pros: Zero tax compliance work
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- Cons: Higher fees (5% vs 2.9%), less control
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**Option B: Stripe + Self-Filing**
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- You collect, you remit
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- Stripe Tax calculates, you file
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- Pros: Lower fees, full control
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- Cons: Complex — need accountants in EU, US, etc.
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**Recommendation:**
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- **Paddle for self-serve:** < $1,000/year customers, global spread
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- **Stripe for enterprise:** > $1,000/year, direct contracts
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**Specific jurisdictions:**
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- **EU:** VAT OSS (One Stop Shop) — file in one country, cover all 27. Stripe Tax or Paddle handles.
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- **UK:** VAT registration required > £85k. Stripe Tax calculates.
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- **US:** Sales tax nexus varies by state. Stripe Tax is essential.
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- **India:** GST on B2B exports is 0% with LUT (Letter of Undertaking). B2C: 18% IGST.
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- **Nigeria:** VAT 7.5%. Complex to collect as foreign entity — Paddle or local partner handles.
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---
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## Implementation Roadmap
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### Phase 1: MVP (Months 1–2)
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**Goal:** Launch with coverage for 80% of addressable market.
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- Stripe: US, Canada, EU, UK, Australia, Japan, Singapore
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- Paddle: Global fallback for countries without Stripe coverage
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- Result: 40+ countries, card/PayPal only
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### Phase 2: Emerging Markets (Months 3–6)
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**Goal:** Add mobile money and local wallets.
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- Flutterwave: Kenya, Nigeria, Ghana, Tanzania
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- Xendit: Indonesia, Philippines
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- Evaluate: Pakistan (Payoneer), Bangladesh (stay on Paddle)
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### Phase 3: Deep Localization (Months 6–12)
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**Goal:** True local payment methods where volume justifies.
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- Egypt: Fawry/Paymob if customer base grows
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- Bangladesh: bKash integration (requires local entity)
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- Pakistan: Easypaisa/JazzCash direct
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- India: Full UPI optimization, RuPay support
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---
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## Fallback Strategy: What If a Payment Fails?
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**The problem:** A user in Nigeria tries to pay, card fails, no mobile money option, no PayPal.
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**Options:**
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1. **Wire transfer / SWIFT:** Manual. You send invoice, they wire. High friction, high fees ($20–50), but works for annual enterprise contracts.
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2. **Crypto (USDC/USDT):** Immediate, global, final settlement. Controversial but effective for unbanked tech users.
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3. **Partner/reseller model:** Local MSP or integrator buys Clavitor seats wholesale, resells locally, handles local payment collection.
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**Recommendation:**
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- For enterprise Nigeria, India, etc.: Offer annual wire/crypto with 10% discount to offset friction
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- For SMB: If Paddle + Stripe fail, the market isn't reachable yet. Don't build custom.
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---
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## Summary: The Minimal Viable Stack
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If you want absolute minimal partners with maximum honest coverage:
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1. **Stripe** — 70% of global revenue, all enterprise
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2. **Paddle** — Tax compliance, global self-serve fallback, 100+ countries
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3. **Flutterwave** — Africa mobile money (if you want Africa properly)
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That's **3 partners**. Covers 95% of the addressable market with honest local payment methods.
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**Can you do 2?** Stripe + Paddle only. Accepts that Africa outside South Africa and parts of Asia are "cards and PayPal only." Defensible for MVP. Plan to add Flutterwave or Xendit by month 6 if African/SE Asian traction surprises you.
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---
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## Open Questions for You
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1. **Crypto:** Accept USDC/USDT for annual contracts in unbanked markets? (Fast, final, but adds compliance complexity)
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2. **MSP/Reseller:** Do you want a formal partner program where local MSPs (like your Kaseya contacts) can resell Clavitor with local payment handling? They collect local, pay you net.
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3. **Free tier:** Is there a free tier that doesn't require payment at all? (Reduces the payment problem, increases adoption, defers the hard questions)
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4. **Annual default:** Do you optimize for annual payments (one transaction, less recurring complexity) or monthly (lower barrier, higher LTV analysis)?
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---
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*Plan complete. Ready to implement Phase 1 (Stripe + Paddle) immediately.*
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