Challenge

PatPat was founded in 2014, during a global boom in international e-commerce. Since then, it’s become a leading e-commerce platform for baby products, offering high-quality yet affordable children’s apparel. PatPat has expanded to more than 100 countries, serving more than 23 million customers worldwide, and has become the fastest-growing DTC brand for children’s apparel.

As PatPat experienced rapid growth, it faced several challenges. The swift increase in size and business volume strained its payments integration processes, impacting its overseas expansion and revenue. Additionally, users prioritised security, convenience, and speed in the payment process, prompting PatPat to overhaul its payment process and improve the user experience.

PatPat identified specific requirements for its new payment solution. It needed to support local wallets or payment methods to reduce operational costs. It also had to provide consolidated monitoring, reporting, and payouts as well as effective data management, enhancing decision-making and operational efficiency while ensuring smooth processes. In addition, it had to continually optimise the payment flow to improve the user experience.

Solution

After a thorough review of the mainstream payment providers on the market and extensive communication with Stripe’s technical team, PatPat was particularly impressed with Stripe’s offering in terms of ease of use, scalability, and product range.

Stripe Payments supports proven local wallets and payment methods, using an algorithm to offer the most relevant payment methods to customers. This increases conversion rates and reduces the operational costs of payment channels as well as the difficulty of subsequently closing accounts.

PatPat leveraged Stripe’s technical support to create a payment system that not only works with multiple global payment methods but also features real-time settlement and multi-account management, ensuring merchant funds are secure and quickly available. Moreover, Stripe provides detailed data and analysis functions that help PatPat refine sales strategies and reduce fraud.

Using the clear and automated data integration and analysis capabilities provided by the back-office analytics modules, PatPat has been able to gain comprehensive insights into data from all payment methods and channels.

For financial management, PatPat also uses Stripe Revenue Recognition, which consolidates all revenue sources for unified management and presents them as automated reports that show the overall revenue situation in an accessible way.

Results

A new payment experience that cuts costs and increases efficiency

PatPat, in collaboration with Stripe, has built a streamlined payment solution that reduces cost and enhances efficiency. This secure system aligns with PatPat’s business needs and benefits from Stripe’s easy integration and professional service.

Stable product, smooth payment experience, and hassle-free customer service

Stripe’s stable payments products and 24/7 fast and professional technical support have ensured a smooth payment experience for PatPat, effectively addressing any technical issues and supporting the company’s growth.
“Stripe is one of the most straightforward payment platforms I’ve seen, with an exceptionally smooth user experience,” said Wendy Wei, risk control manager for payments of PatPat.

Customised reports; intuitive visuals; and comprehensive, easily accessible data

The analytics modules in Stripe’s back office provide PatPat with customised reports to meet their business needs. The reports aggregate payment-related data (such as payment success rate, 3DS trigger rate, pass rate, authorisation rate, and transaction data) and present it clearly on an intuitive dashboard for comprehensive business monitoring. Meanwhile, PatPat and Stripe have set up localised payment channels in different regions to create unique payment routing, and with PatPat’s technology, they can flexibly match incoming and outgoing orders to streamline their operations and reduce transaction costs.

Seamless checkout experience

Stripe helped PatPat increase its bank approval rate by more than 5% by intelligently converting transaction requests from PatPat into the format preferred by the acquirer or bank using a massive sample database. The Adaptive Acceptance feature automatically retries failed orders, improving the payment success rate and recovering many failed orders, which increases revenue.

Simplified finance reporting

The integration of Revenue Recognition has streamlined PatPat’s financial data management, and revenue accounting and ledger integration are now accurate and automated. Financial statements are accurate down to each transaction, including clear and structured lists of interchange, scheme, and processing fees, and statements can be easily downloaded based on the selected period. This greatly simplifies financial reconciliation, increases team flexibility and efficiency, and significantly reduces the burden on the finance department.

“In addition to the comprehensive dashboard features, using the Stripe system to generate financial statements or other customised reports is a breeze. The structure of these reports is clear and logical, greatly reducing the stress on our employees in the finance department,” Wei says. “In fact, we use Stripe’s financial report structure as a reference template even when communicating with other payment providers.”

PatPat looks forward to exploring more opportunities with Stripe in the future, making digital payment technology an integral part of its business innovation; reimagining the e-commerce shopping experience; and bringing high-quality, low-cost baby products to more families around the world.