a16z Podcast | The Oral History Of TrialPay — Obstacles and Opportunities in Payments

TL;DR

Alex Rampell and Terry Angeles discuss the challenges of succeeding in the payments industry and the future of payments.

Transcript

welcome to the a 16z podcast today we're having another of our hallway style conversations these episodes are based on videos that are also available on our YouTube channel at youtube.com slash c / a 16z videos how can a payments startup succeed in an industry dominated by few well-known incumbents and what obstacles might encounter along the way a... Read More

Key Insights

• 😮 Verticalized commerce, exemplified by companies like Alibaba and Tencent, is on the rise and is reshaping the payments industry.
• 🎮 The trend of payments becoming embedded within ecosystems is both an opportunity and a threat for startups, as it can simplify payments but also give ecosystem providers control over payment processors.
• 🤑 The digitization of payments and the rise of digital fiat can lead to programmable money, enabling smart contracts and transforming how payments work.
• 🐕‍🦺 The unbundling of functionality in payments, such as authentication and credit, creates opportunities for startups to provide specific services and innovate within the industry.

Questions & Answers

Q: How did Alex Rampell and Terry Angeles meet and decide to start trial pay?

Alex met Terry through a mutual connection, Chris Dixon, who was recruiting for an interesting company. They connected and decided to start trial pay together after a conversation.

Q: What challenges did trial pay face as their target markets shifted from downloadable software to social gaming and mobile?

Trial pay had to navigate the changing landscape of the gaming industry due to the rise of Facebook applications and mobile gaming. These shifts required trial pay to adapt and find new markets and opportunities.

Q: How did trial pay split into two separate teams, Yub and trial pay, and what were the benefits of this decision?

Trial pay and Yub split into separate teams in order to focus each entity on different areas of growth. The split allowed team members to self-select, with those wanting management responsibility joining trial pay and those seeking a higher-risk startup environment joining Yub.

Q: Were there times when trial pay was close to failing, and how did they address these challenges?

Trial pay faced difficult times and the potential for failure, particularly during shifts in their target markets and failed acquisition discussions. However, the team persevered, sought new opportunities, and maintained a focus on innovation and adaptation.

Summary & Key Takeaways

• Alex Rampell and Terry Angeles discuss their journey as co-founders of payments company trial pay and the obstacles they faced.

• They highlight the importance of finding product-market fit and navigating the changing landscape of the payments industry.

• The conversation delves into the evolution of trial pay from offer-based payments for downloadable software to social gaming and mobile, and eventually the sale of the company to Visa.