The Oral History of TrialPay -- Obstacles and Opportunities in Payments | Summary and Q&A

TL;DR

TrialPay, a payment platform that added a third party to traditional payment transactions, evolved multiple times to adapt to changes in the market, including the rise of social gaming and mobile. The company split into TrialPay and Yub to focus on different markets and eventually sold to Visa. Key insights include the importance of distribution and innovation, the complexity of the payments ecosystem, the rise of verticalized commerce, and the potential impact of digital currencies on payments.

Key Insights

• ❓ The success of startups often depends on whether they can achieve distribution before incumbents can achieve innovation.
• 🤩 The payments ecosystem is complex, and simplifying it can be a key factor in a company's defensibility.
• 😮 The rise of verticalized commerce, where payments are embedded in a larger ecosystem, presents both opportunities and challenges for startups and incumbents.

Transcript

I'm Alex rampell I'm a General Partner here at injuries in Horowitz where I mainly cover things FinTech or financial technology and I'm here with Terry Angeles who is the SVP of commerce solutions at visa but I know him better as my co-founder at trial pay which we started so if today is April 24th 2018 I believe we incorporated trial pin in April ... Read More

Questions & Answers

Q: How did TrialPay evolve from its initial offering for downloadable software applications?

TrialPay initially focused on offering free products or services to users who engaged with advertisers through downloadable software applications. However, the company had to adapt to changes in the market, such as the rise of social gaming and mobile, and shifted its focus accordingly.

Q: How did TrialPay navigate the challenges posed by the changing markets of social gaming and mobile?

TrialPay faced challenges as the gaming ecosystem evolved with the emergence of Facebook applications and mobile gaming. The company had to find new markets and establish itself within these markets with innovative solutions. The company experienced both successes and setbacks as it had to adapt to these rapid changes.

Q: How did TrialPay's split into TrialPay and Yub benefit the company?

The split allowed TrialPay to separate its existing business from new innovations and create two separate teams to focus on each area. This enabled more focused decision-making and motivated employees differently based on their interests and goals. Additionally, the split helped lower costs and focus TrialPay's efforts on its core business.

Q: How did TrialPay's acquisition by Visa impact the company's growth and product development?

The acquisition by Visa allowed TrialPay to integrate its innovation into a larger, more scalable platform. TrialPay's technology and expertise in payments were combined with Visa's resources and reach, resulting in the development of new products and services. This acquisition also provided TrialPay with access to more clients and opportunities for growth.

Summary & Key Takeaways

• TrialPay was founded in 2006 as an offer-based payments platform for downloadable software applications, allowing users to receive free products or services in exchange for engaging with an advertiser.

• The company evolved to focus on different markets, such as social gaming and mobile, to adapt to changes in the industry, but faced challenges with the rapid development and shifts of these markets.

• TrialPay split into two entities, TrialPay and Yub, to separately focus on the existing business and new innovations, allowing for more focused teams and effective decision-making.

• The company eventually sold to Visa, with the acquisition allowing for the integration of TrialPay's innovation into Visa's existing platform, resulting in the development of new products and services.