
I Created a $60K/Month App That Collects In-Person Payments Through Stripe - patwalls
https://www.starterstory.com/stripe-in-person-payments
======
ttraub
He's getting 80% of the gross = 48,000/month. That's impressive income, half a
million a year for what amounts to a good idea implemented at the right time.
I love reading stories like this, and it demonstrates that there are still
many opportunities out there. I don't understand some of these comments which
seem to resent his success or belittle his company as "not a unicorn". That's
good money, he works for himself, not beholden to investors or creditors, and
he's raising a young family in an affordable region. Congratulations to him
for a job well done.

~~~
rscherf
Thank you! I’ll be first to admit it was perfect timing (which wasn’t planned
at all). The freedom is what I was looking for; if nobody buys it, I’ll happy
just keep running it. If Stripe launches the same features, I’ll figure out
how to pivot. Or, build something completely new. Who knows what the future
holds.

~~~
SpicyPico
I foresee a potential scenario where Stripe hires you if they deem what you
have created, and more importantly the person behind its creation, is worth
integrating. I would be surprised if you do not see formal contact from them
(if you haven't already)!

Great work.

~~~
rscherf
Thanks! I work closely with several people at Stripe already across many
different teams, so not really holding out hope for anything. Very happy and
content with where I’m at.

~~~
sah2ed
Slightly unrelated, from what web tools did you take these screen shots [1,2]
that were shared in your interview?

1\.
[https://s3.amazonaws.com/www.starterstory.com/story_images/i...](https://s3.amazonaws.com/www.starterstory.com/story_images/images/000/003/515/original/open-
uri20191103-4-1jma451?1572745631)

2\.
[https://s3.amazonaws.com/www.starterstory.com/story_images/i...](https://s3.amazonaws.com/www.starterstory.com/story_images/images/000/003/516/original/open-
uri20191103-4-zgmmlr?1572745631)

~~~
globile
The first one is Zendesk [1]. Not sure about the 2nd one but I don't think
it's Google Analytics.

1.[https://www.zendesk.com/](https://www.zendesk.com/)

~~~
rscherf
That’s right, second is Apptweak

------
fagnerbrack
"I personally respond to every single support request. This allows me to keep
my pulse on what’s working and what isn’t, and get ahead of the features that
are being requested often."

Programmers closer to the customer. Check.

------
jonkratz
I had the opportunity to play a very small part in a previous project of
Ryan’s. He’s a great person and I’m incredibly happy to see the success he’s
had.

It’s encouraging to hear stories like this — you don’t know how any particular
side project (hobby) might do, but the right product at the right time can be
what makes all the difference. And you don’t need to have VC money and tens or
hundreds of developers working on something to bring genuine value to people.

------
brobdingnagians
One of the things I love about this is that it is an independent small
business that helps others run their own independent small businesses. It
makes it easier to decentralize markets and for people to work for themselves.
one of the things I don't like much about some "startup unicorns" is that they
seem to have as their goal to employee lots of other people and become just
like every other large corporation. But I applaud solutions that help people
become more free to pursue their own ideas. And even though Stripe is a
unicorn itself, it helps the small businesses by having an excellent API that
eases integration and products like this.

------
dvt
It's interesting how a common tenet of startups is "build products, not
features" \-- and yet here's a very clear example of a "feature" that can be
very successful.

~~~
filleokus
Well, isn't that advice also mostly given to founders aiming to create a
potential ≈unicorn and not a lifestyle business like this?

Don't get me wrong, what this guy has done is impressive. Growing a company
while staying profitable all the way, and being able to support himself is
great. I would switch places with him (ex post facto) in a heart beat.

But still, this company will probably never be bought by anyone (besides maybe
Stripe), and could very well exist for many years to come with 1-2 employees
including the founder.

~~~
taneq
$60k/month is a hell of a “lifestyle”.

~~~
buzzkillington
You can get that sort of money as a developer if you're lucky and in the right
place. I just finished a contract with an Evil Inc that was paying pretty
close to that. From my personal sample getting a job that pays that well is a
lot easier than getting a business to be successful enough to have that much
profit.

~~~
rscherf
Happy to not be selling my soul to another Evil Inc or having a boss... tried
that several times before.

~~~
buzzkillington
You do you man. But if you have the skills you have it will be a lot easier to
make that much money in corporate than on your own.

That said I'm buying some specialized equipment for a synthetic biology
startup I'll be trying my hand at before my next contract. I expect to spend
most of the money I made and get no where, again.

~~~
slimed
Thanks, BuzzKillington.

Have you considered that your definition of "easy" might be different than
that of OP's?

~~~
buzzkillington
There are many more opportunities to make net middle six figures being a cog
in a machine than doing it out on the market.

Is that pedantic enough?

~~~
slimed
I don't find the distinction pedantic at all.

There are plenty opportunities to be a janitor but there are aspects of that
job I find unpalatable. Even if you paid me six figures.

------
alibaba_x
How can such an app compete against Stripe’s very own Terminal? Don’t this
guy’s customers know that an official option exists?

[https://stripe.com/terminal](https://stripe.com/terminal)

~~~
kohanz
At first glance, Terminal looks like it still needs some level of integration
and development work. It's not a ready-to-go, install-the-app-and-process-
payments solution.

~~~
xyzzy_plugh
Terminal is really for people like this guy. For folks who want to
sell/distribute integrated POS systems e.g. Shopify.

~~~
rscherf
That’s exactly right. Terminal solved a problem for me (I used to integrate
Mattel card readers to a serious amount of pain). I worked with Stripe to help
identify good ones, and they built easy to use APIs to integrate. This is
exactly what they hoped for.

------
jagira
Why does USA not have a system like UPI
([https://en.wikipedia.org/wiki/Unified_Payments_Interface](https://en.wikipedia.org/wiki/Unified_Payments_Interface))?
It simpler, easier and cheaper (mostly free).

~~~
paulddraper
Most countries, let alone the USA, do not have a system like UPI.

That UPI was agreed upon by enough people was a happy accident for India.

~~~
hatfortguy
Whilst not quite UPI, the UK has a pay-via-text (sms or Whatsapp) system that
nearly every person has access to but barely anyone uses. It amazes me how
people naturally gravitate to card-based payments, even when Visa and
MasterCard are taking a cut.

------
ratsimihah
> For instance, the just build it and ship it mentality is something you won’t
> find in any book -- as it doesn’t discuss testing, finding product-market
> fit, etc.

I think that's essentially what This is marketing by Seth Godin covers.

~~~
K0SM0S
Iirc also Lean Startup by Eric Ries —this is basically part of that— as well
as The War of Art by Steven Pressfield (to some degree). It's also generally
the motivation behind agile from a management standpoint.

Definitely tons of literature covering this approach.

------
heyalexej
Slightly off-topic and not doubting this particular story. Posts from this
blog get submitted every few minutes it seems. Is anyone checking and
verifying the numbers these companies and "startups" claim to make? If so,
how?

~~~
rscherf
I’m the founder, and although I can’t speak for the other posts, I can assure
you the numbers are real. Several posts in my personal and business Twitter
feeds can confirm.

~~~
ignoramous
Incredible story and a pretty good product. It takes some skill to out do
Stripe at being easier and simpler to setup and use. Thanks for the
inspiration.

Congratulations!

------
jliptzin
Couldn't stripe just add this feature in their mobile app? Why haven't they
done so?

~~~
scottmcf
That would be my concern for this business. It'll disappear instantly when
they do (and it's got to be a when, right?) but he's getting good value for
moving quickly. Or maybe they get acquired.

~~~
hackermailman
When Stripe eats his lunch, he'll just find something else to simplify/solve
they offer that's too complex, and probably still make money. They may even
try and hire him as a product manager or something.

~~~
rscherf
I guess it’s possible they’ll eat it, but they sort of already are. They get
the benefits of my work on growth as they get their same fees and don’t have
to dedicate anyone to an app.

~~~
52-6F-62
That’s exactly how many back end payment processors work in Canada. Banks
would even rather pay a third party to handle things like (what we have
called) Interac email money transfers than do the work in house as it saves on
large amounts of overhead, administrative and insurance costs.

You’ve got a good niche and I have to admit I’m envious of the position you’re
in—that level of autonomy seems rare.

It’s also a stupidly great idea for non-technical trade and craft shows. No
infra or complex setup needed. Smart. Well done.

------
Dunedan
> I’ve set a goal to be processing $10M/month in Stripe volume by Spring,
> which is a pretty big stretch goal.

As the app is already highly profitable, why suddenly such an ambitious goal?

~~~
rscherf
Great question. It’s not about the money, but more about how I was passive for
too long just letting it be. I’ve waited to invest in several things for
growth until I knew had the market cornered. I’m not too concerned about
adding more features now, so the only next logical step is growth.

Growing from $6M to $10M didn’t seem huge at the time, but now it does...

~~~
elbear
Still, what's your motivation for wanting to grow more? Money can be a
legitimate motivation, but you said that's not it. I guess I'm curious what
drives you now.

~~~
rscherf
Larger user base will hopefully protect me from being cut off.

~~~
agustif
One could argue also the contrary, a larger user base might make you more of a
target for Stripe to cut-off. Who knows.

~~~
rscherf
That argument doesn’t make any sense to me. Stripe gets 2.9% regardless of how
many users I have. It’s just volume to them.

~~~
pretentiousPear
I believe they mean that by, increasing your user base and revenue even more,
you'll convince Stripe that having their own feature/app developed is
absolutely necessary. And they might be concerned that you represent a one-
person company, single point of failure. They can't just rely on you to be
there for them forever.

But I really hope they don't :) Great story. Thank you for sharing and for the
inspiration.

------
echelon
Isn't this just Square, but with cheaper processing fees (since Stripe is
eating the bill)?

~~~
gruez
>but with cheaper processing fees

What? The product's page says it charges 1% + whatever Stripe charges
("generally" 2.9% + $0.3). A quick search says that Square charges 2.6% +
$0.10 per in-person transaction. Seems like that this product is _more_
expensive than Square.

~~~
echelon
Ah, good find! The article claims

> The app collects a 1% service fee on every single charge.

Per your comment, this is indeed a more expensive Square. Square already does
Card Not Present transactions.

The question then is why do people choose to use this?

~~~
rastographics
Sounds like his app is for people who already are using stripe (existing
online store, etc) and want to start using Stripe for in-person too.

~~~
rscherf
Correct. Most user come from the e-commerce world and are willing to pay for
the convenience of a simple, POS app.

------
ianai
After the news about pornhub and PayPal yesterday, any chances you’d add their
use case?

~~~
claviska
I believe that would be classified as a restricted business and disallowed by
Stripe’s TOS. [1]

1\. [https://stripe.com/restricted-businesses](https://stripe.com/restricted-
businesses)

~~~
ianai
Sure, but after having all that infrastructure and resources built up an
expansion should be easier than starting at zero.

~~~
faitswulff
Stripe is kind of analogous to a utility company here. They're an upstream
provider. They don't care about what "infrastructure and resources" you've
built. If you break the terms of service, they will cut you off, just like if
you don't pay for your gas/electric you will quickly find yourself with a non-
functional home, regardless of how fancy it is.

~~~
paulkon
Is Stripe forced to do this because of their upstream provider ToS, Well's
Fargo?

~~~
cmdshiftf4
Does it matter? It's a private business, they can do what they want, right?

~~~
calvinmorrison
Eh it's kind of relevant. I worked at a high end tobacco sales company and we
were limited to a few payment providers due to selling tobacco online. This
amounted to using a very second tier provider. Also PayPal would flag anything
with the words Cuba in it. So many cigars use the word Cuba, and we didn't
sell those. Annoying at best, but at worse we had more frequent downtimes
because our payment gateway wasn't close to reliable.

------
rasikjain
Very inspiring Ryan!! Impressive to capitalize on the customer need. This
gives the financial freedom and time to pursue other interests. Best wishes!!

------
jimnotgym
Does this have a market outside of the US, without chip&pin card readers? You
are taught in the UK never to take face to face payments without chip & pin or
chargebacks are indefensible.

~~~
rscherf
We have an integration with Payworks for non-US, but mostly hoping Terminal
rolls out globally soon.

But, no card reader is required.

~~~
jimnotgym
So how do you handle chip & pin without a card reader?

~~~
rscherf
It’s handled as non card present, similar to e-commerce. At some point, 3DS
will be required.

~~~
jimnotgym
So if the person in front of your stall has a stolen card, and you are about
to sell them some goods. Let us say you are selling them a tv. They play with
their stolen card, take the tv, the card owner sees a transaction they don't
know and complain to their bank, you get a chargeback. You just lost a tv. In
the UK this is rare, due to chip & pin. It is very easy to defend a chargeback
when the customer entered a pin into your terminal.

If someone wants a tv delivered to their house you do a 'customer not present'
transaction, which can use their house number and area code to authenticate
that the card is registered at the address you are delivering to. Now if they
raise a chargeback you can defend it by showing a delivery note etc. If you
use a 'not present' to do a face to face sale surely you have just defeated
the security model entirely?

~~~
rscherf
Chip & pin is not a requirement in the US, but I agree with you that using it
does alleviate risk. This is why Stripe offers a fee discount to 2.7%+5c when
using their card reader vs. 2.9%+30c. These are common fee structures for
other gateways like Square.

The app runs all transactions through the Connect accounts Radar fraud
filters, and the user can opt to force several levels of validation on the
card (CVV, zip/postal, name, address).

These types of transactions happen all the time, regardless of if they're more
secure or not.

~~~
jimnotgym
> Chip & pin is not a requirement in the US,

It really is in the UK. I think you will struggle here

------
homero
I haven't been able to connect to [https://payment.co/](https://payment.co/)
yesterday or today

~~~
rscherf
Looks like the redirect is broken. Try
[https://paymentforstripe.com](https://paymentforstripe.com)

------
plinkplonk
Hey Ryan,

In the interview you say that you transitioned from dev to design.

How did you go about doing this? Any advice for someone planning a similar
shift?

~~~
rscherf
I always had an interest in design, designing a lot of websites before and
during college. My first job out of college was a Java Support Dev, for a
health care company, which was soul-sucking. Troubleshooting production bugs
and fixing them was not something I wanted to do.

I volunteered to build the interface of a product we were working on and never
looked back.

------
prostanac
How do they handle physical receipts? In my country you are required to
provide a paper receipt for every transaction.

~~~
unnouinceput
In our country you can also just get the transaction itself printed on your
own and use that as a receipt for tax man. Sanatate!

------
lovetocode
Great job! Congratulations on your success!

------
homero
How'd you manufacture a card reader?

~~~
rscherf
Didn’t. First integrated with Magtek (insanely painful). Then I wished that
another company would make it simpler. Along cane Stripe’s Terminal and here
we are.

------
NoblePublius
What does this do that Square doesn’t?

~~~
tempestn
It's convenient for businesses that already use Stripe.

