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How We solved the problem by not delivering the request.

How We solved the problem by not delivering the request.

The Central bank in Brazil shared a plan to create a new method of Buy Now Pay Later(BNPL) that works like a small Loan that every acquire had the obligation to implement.

Stone could lose profit because this new method would benefit banks, cardholders and merchants making Stone's solution less attractive.

How We solved the problem by not delivering the request.

The Central bank in Brazil shared a plan to create a new method of Buy Now Pay Later(BNPL) that works like a small Loan that every acquire had the obligation to implement.

Stone could lose profit because this new method would benefit banks, cardholders and merchants making Stone's solution less attractive.

The challenge

The challenge

Our Buy Now Pay Later(BNPL) method was at that time 50% of Stone's income, I'll explain more about this in details in this page.

I have received the task to create a similar option for Central Bank's Buy Now Pay later method “with interests” but instead of banking interest we would use the anticipation fee.

The challenge

Our Buy Now Pay Later(BNPL) method was at that time 50% of Stone's income, I'll explain more about this in details in this page.

I have received the task to create a similar option for Central Bank's Buy Now Pay later method “with interests” but instead of banking interest we would use the anticipation fee.

Design thinking

Design thinking

In order to find a solution, We used the Design Thinking frame work

👞

EMPATHIZE

🎯

DEFINE

💡

IDEATE

👩‍🎨

PROTOTYPE

🧪

TEST

Context scenario

Context scenario

$300 Product price

Consider a product sold for $300 in 3 Buy Now Pay Later(BNPL) on those 3 scenarios

Benefits Stone but bad for merchants

3 monthly splits(BNPL)

Interests-FREE

Cardholder pays only for the product

Business owners gets the money each month

Can pay a anticipation fee an get on the day next

$300 breakdown after sale

The Merchants loses

$10 on anticipation fee p/ month (3 months = $30) to Stone

The cardholder final payment

$300 to the merchant

Day next merchants receives

$270 in his bank account.

Without anticipation it would take 3 months to receive each installment.

Benefits banks but bad for cardholders

3 monthly splits(BNPL)

WITH interests

Cardholder pays 3 months of interests to the bank

Business owners gets all at once, but only 30 days later

Impossible to track the interest banking fee, card holder would find out only later how much

$300 breakdown after sale

Cardholder pays extra

$10 on interest fee p/ month (3 months = $30) to the Bank

The card holder final payment

$330 Card holder pays

After 30 days merchant received

$300 in his bank account

This option can't be anticipated

Benefits banks, merchants and cardholders

3 monthly splits(BNPL)

NEW METHOD

Cardholder pays 3 months of interests to the bank

Business owners gets all at once 5 days later

Possible to track interest fees

$300 breakdown after sale

Card holder pays extra

$10 on interest fee p/ month (3 months = $30) to the Bank

The card holder final payment

$330 Card holder pays

5 days later merchants receives

$300 in his bank account

Automatic anticipation where the fee is going to the cardholder

3 Installments NEW METHOD

Card holder pays 3 months of interests to the bank

Business owners gets all at once 5 days later

Possible to track interest fees

$10 on interest p/ month

$330 Card holder pays

$300 Owner gets

Benefits Banks and Seller

Benefits bank

3 Installments WITH interests

Card holder pays 3 months of interests to the bank

Business owners gets all at once, but only 30 days later

Impossible to track the interest banking fee

$10 on interest p/ month

$330 Card holder pays

$300 Owner gets

Context scenario

$300 Product price

Consider a product sold for $300 in 3 Buy Now Pay Later(BNPL) on those 3 scenarios

Benefits Stone but bad for merchants

3 Installments Interests-FREE

Cardholder pays only for the product

Business owners gets the money each month

Can pay a anticipation fee an get on the day next

$300 breakdown after sale

The Merchants loses

$10 on anticipation fee p/ month (3 months = $30) to Stone

The cardholder final payment

$300 to the merchant

Day next merchants receives

$270 in his bank account.

Without anticipation it would take 3 months to receive each installment.

Benefits banks but bad for cardholders

3 monthly splits(BNPL)

WITH interests

Cardholder pays 3 months of interests to the bank

Business owners gets all at once, but only 30 days later

Impossible to track the interest banking fee, card holder would find out only later how much

$300 breakdown after sale

Cardholder pays extra

$10 on interest fee p/ month (3 months = $30) to the Bank

The card holder final payment

$330 Card holder pays

After 30 days merchant received

$300 in his bank account

This option can't be anticipated

Benefits banks, merchants and cardholders

3 monthly splits(BNPL)

NEW METHOD

Cardholder pays 3 months of interests to the bank

Business owners gets all at once 5 days later

Possible to track interest fees

$300 breakdown after sale

Card holder pays extra

$10 on interest fee p/ month (3 months = $30) to the Bank

The card holder final payment

$330 Card holder pays

5 days later merchants receives

$300 in his bank account

Automatic anticipation where the fee is going to the cardholder

3 Installments NEW METHOD

Card holder pays 3 months of interests to the bank

Business owners gets all at once 5 days later

Possible to track interest fees

$10 on interest p/ month

$330 Card holder pays

$300 Owner gets

Benefits Banks and Seller

Benefits bank

3 Installments WITH interests

Card holder pays 3 months of interests to the bank

Business owners gets all at once, but only 30 days later

Impossible to track the interest banking fee

$10 on interest p/ month

$330 Card holder pays

$300 Owner gets

👞

👞

EMPATHIZE

🎯

🎯

💡

💡

👩‍🎨

👩‍🎨

🧪

🧪

Kick off

We ran a CSD MATRIX that stands for Certainties, Assumptions and Doubts

The goal in here is to gather as much people with knowledge in the product you want to build or have information, then you cluster data and use knowledge to create hypothesis

Recruiting merchants to interview

We talked to small businesses and conducted a questionnaire to understand the User Journey to find problems and needs regarding the current BNPL, the installments and settlement.

Research on merchant behavior

Business Owners who used BNPL without interest
to understand:

Business Owners who used instalment without interest to understand:

  1. How they were using

  1. Why they preferred this method

  1. Context of usage

They did the math and added the anticipation fee into their product’s price when selling by instalment

Understand behaviour

Business Owners who used BNPL with interest
to understand:

  1. How they were using

  1. Why they preferred this method

  1. Context of usage

No math required, buyer accepts the interest but it is impossible to know the final price because this information is not available.

Opportunity

Business Owners who don't use BNPL at all:

  1. Why they were not using

  1. What could make them use?

  1. Could we solve their issue?

Afraid of anticipation fees and need to sell cheap to profit with volume

Opportunity

Business Owners who used instalment without interest to understand:

  1. How they were using

  1. Why they preferred this method

  1. Context of usage

They did the math and added the anticipation fee into their product’s price when selling by instalment

Understand behaviour

Business Owners who used BNPL with interest
to understand:

  1. How they were using

  1. Why they preferred this method

  1. Context of usage

No math required, buyer accepts the interest but it is impossible to know the final price because this information is not available.

Opportunity

Business Owners who don't use BNPL at all:

  1. Why they were not using

  1. What could make them use?

  1. Could we solve their issue?

Afraid of anticipation fees and need to sell cheap to profit with volume

Opportunity

Buyer habits

The full price is never affordable for the majority of consumers in Brazil, their only concern with BNPL is whether the monthly amount is affordable, even if it takes years of monthly payments.

“The monthly charge needs to be affordable”

Seller habits

For the seller, knowing the amount in their bank account after a sale was a difficult task because of the fees, a mistake could lead to profit loss.

“If I charge R$ 1,000 in the BNPL method, split in 3 months, how much will I receive in my bank account and when?”

👞

🎯

DEFINE

💡

👩‍🎨

🧪

Defining the problem

The math is complicated due to varying card fees, installment percentage ranges, and the anticipation fee dependent on the number of installments.

Business owner's life

• Cash flow
• Suppliers
• Inventory
• Contracts
• Government taxes

Merchants didn't want to add complexity in their workflow but needed the money to be anticipated, Brazilian people NEED the installment method to be able to afford expensive items, and the new bank solution would make Stone lose the anticipation fee to banks because of it was more simple to understand and apply without risk.

Defining Hypothesis

There were 2 questions that if we could make the business owner answer on their own, We should have the problem solved

🎯

TRANSPARENCY ISSUE

How much will I receive?

If I charge you R$100 using BNPL interest-free how much will I receive and when, what if I anticipate?

🎯

KNOWLEDGE ISSUE

How much do I need to charge?

How much do I need to charge this client for him to pay in 3 installments and I receive R$100 by tomorrow?

👞

EMPATHIZE

🎯

DEFINE

💡

👩‍🎨

🧪

👞

🎯

💡

IDEATE

👩‍🎨

🧪

Ideation process

We assembled all relevant teams involved with the product, selected stakeholders, and collaborated to create the best flow to solve the problem.

7

Teams

The Solution

After observing sellers working with the interest-free installment(BNPL), we found that some used an Excel table to add the anticipation fee to the product price to fix the knowledge issue. So We created a sale simulator in the terminal to facilitate this process for other sellers, allowing them to input the necessary information to solve both issues.

🎯

Transparency: How much will I receive?
Knowledge: How much do I need to charge?

👞

💡

IDEATE

🎯

👩‍🎨

🧪

👞

🎯

💡

👩‍🎨

PROTOTYPE

🧪

Prototyping for the machine

Low-fidelity prototypes were useful for testing within the team to validade quickly, with stakeholders, stone workers such as Developers and Customer Relations.

TOTAL

R$ 110,00

R$ 55,00

2X

TOTAL

R$ 115,00

R$ 35,00

3X

TOTAL

R$ 120,00

R$ 30,00

4X

TOTAL

R$ 125,00

R$ 25,00

5X

TOTAL

R$ 125,00

R$ 20,83

6X

TOTAL

R$ 130,00

R$ 18,57

7X

TOTAL

R$ 133,00

R$ 16,62

8X

TOTAL

R$ 136,00

R$ 15,11

9X

TOTAL

R$ 140,00

R$ 14,00

10X

TOTAL

R$ 143,00

R$ 13,00

11X

TOTAL

R$ 150,00

R$ 12,50

12X

pagamento

20:04

2.0.0

3G

70%

High fidelity

In 2018 prototyping on the real terminal was impossible due to development effort. At the time, the tool used for prototyping(InVision) didn't have scrollable frames with fixed top and bottom, so we moved to Figma to create an infinite border for the prototype. It worked on mobile with scrolling screens abstracting the idea of using a phone, achieving a testable prototype.

👞

👩‍🎨

PROTOTYPE

🎯

💡

🧪


👞

🎯

💡

👩‍🎨

🧪

TEST

Feedback

After 2 rounds of tests and iterations, the feedback we got made us understand that we were ready for implementation

After 2 rounds of tests and iterations, the feedback we got made us understand that we were ready for implementation

After 2 rounds of tests and iterations, the feedback we got made us understand that we were ready for implementation

see users feedback bellow.

see users feedback bellow.

see users feedback bellow.

  • Nice, now you know how much you will get, I think this is good

  • "I think everyone would use it! to those who add an profit margin will be really good, because we would know how much we would earn"

  • "I would try to negotiate with the customer"

  • “Is this already available at Stone?"

  • Nice, now you know how much you will get, I think this is good

  • "I think everyone would use it! to those who add an profit margin will be really good, because we would know how much we would earn"

  • "I would try to negotiate with the customer"

  • “Is this already available at Stone?"

  • Nice, now you know how much you will get, I think this is good

  • "I think everyone would use it! to those who add an profit margin will be really good, because we would know how much we would earn"

  • "I would try to negotiate with the customer"

  • “Is this already available at Stone?"

👞

🧪

TEST

🎯

💡

👩‍🎨

Constrains

PAX S920 was our main terminal at that time, it had very low pixel density, and the screen was tiny, it demanded Pixel perfect UI had a very short space for content so it needed to be intuitive.

Not delivering the requested

The Request: Build a new and better Buy Now Pay Later method

The Delivery: A simulator that was connected to our existing BNPL method giving user's full transparency and knowledge to make decision

This is how we solved the problem by not delivering what was requested but what the user needed.

The Team

Felipe Gallez - Product Designer
Raphael Eckhardt - Product Designer
Daniel - Engineer Manager
Bruna Barbosa - Product Manager

Constrains

PAX S920 was our main terminal at that time, it had very low pixel density, and the screen was tiny, it demanded Pixel perfect UI had a very short space for content so it needed to be intuitive.

Not delivering the requested

The Request: Build a new and better Buy Now Pay Later method

The Delivery: A simulator that was connected to our existing BNPL method giving user's full transparency and knowledge to make decision

This is how we solved the problem by not delivering what was requested but what the user needed.

The Team

Felipe Gallez - Product Designer
Raphael Eckhardt - Product Designer
Daniel - Engineer Manager
Bruna Barbosa - Product Manager

Impact after 3 months of usage in the terminal

1 Jan 2022 - 2 mar 2022

1 Jan 2022 - 2 mar 2022

#4

4º in usage

718k

Terminals using

519k

Bunsinesses

14M

Total interaction

Impact after 3 months of usage in the terminal

1 Jan 2022 - 2 mar 2022

#4

4º in usage

718k

Terminals using

519k

Bunsinesses

14M

Total interaction

Increase in

4.1%

Total usage of installment method without interest

1.6%

Total number of users changing the type of the installment ( from with interest to without interest)

2.5%

Number of anticipation increase after the release


Increase in

4.1%

Total usage of installment method without interest

1.6%

Total number of users changing the type of the installment ( from with interest to without interest)

2.5%

Number of anticipation after the release

All plataforms

The usage of the sale simulator was so expressive that we decided to implement it in all platforms.

The Team

Felipe Gallez - Product Designer
Raphael Eckhardt - Product Designer
Daniel - Engineer Manager
Bruna Barbosa - Product Manager

All plataforms

The usage of the sale simulator was so expressive that we decided to implement it in all platforms.

The Team

Felipe Gallez - Product Designer
Raphael Eckhardt - Product Designer
Daniel - Engineer Manager
Bruna Barbosa - Product Manager

Thank you

Find me on Linkedin

Find me on Linkedin

Find me on Linkedin

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Tell me what you need

Tell me what you need

I'd love to learn about your project needs and see how I can help