Escrow platform: Reducing development costs by 41% with a cost-efficient MVP tech stack
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Project overview
Transactions between buyers and sellers require a solid leap of faith. What if the seller receives the money but doesn’t ship the item or provide the agreed-upon service? Or, what if the buyer refuses to pay for the service or item after receiving it?
Our client realized that this lack of inherent trust was the main pain point for their target audience when creating their direct payment platform. So, the company decided to pivot from the original product idea and instead launch an escrow platform to make transactions more secure for sellers and buyers.
The platform would enable a third party (namely, our client’s platform) to hold onto the payment until the seller ships the goods or provides services and the customer confirms they received them. With the deal’s conditions met, the platform would release the buyer’s payment to the seller.
Pivoting to the new product idea, however, wasn’t that easy. Our client needed an experienced development partner to implement the new functionality, even as it conflicted with the platform’s original design. On top of that, security and regulatory compliance requirements for the MVP were substantial. The product had to be ready for launch as a mobile app and an online platform.
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Challenges
Understandably, our client didn’t want to throw out the existing codebase and start building the MVP from scratch. That’s why our task was to review the existing frontend and backend code to identify what to reuse and what to remove because it conflicted with the new functionality.
New features involved an additional user role (intermediary), Plaid integration, and flows for deal negotiations, disputes, and cancellations. We also had to rework payment and transaction flows to adapt them to the new functionality.
At the same time, like most startups, our client didn’t have many resources to go around. We agreed to build new screens based on the existing designs instead of creating new mockups first to minimize development costs. We also suggested using Capacitor to build a native app and then convert it into a progressive web app (PWA).
As our client was based in California and planned to provide escrow services, regulatory requirements were also at the forefront of the product owner’s mind. So, we had to ensure the platform remained secure with multi-factor authentication, role-based access, and compliant financial reporting capabilities.
Strategic business needs
01 Reuse the existing codebase to build the MVP on a tight budget.
02 Adapt the platform to new functionality and remove conflicts with old features.
03 Reuse the existing design to add new screens without designing mockups.
04 Ensure compliance with the state and federal regulations.
05 Launch mobile apps on the Google Play Store and Apple’s App Store.
06 Launch the product as an online platform.
07 Achieve a month-on-month growth rate above 10% within the first two years.
08 Reach a net promoter score above 60 within the first two years.
Technical requirements
01 Refine login and business connection user flows.
02 Integrate the platform with Plaid.
03 Use Capacitor to build native iOS and Android mobile apps.
04 Implement the intermediary role in the platform.
05 Enable users to negotiate, cancel, and dispute deals and transactions.
06 Add financial reporting capabilities.
07 Adapt the payment and transaction flows to the new functionality.
08 Convert the mobile app into a progressive web app (PWA).
09 Secure the platform with role-based access and multi-factor authentication.
10 Add eSignature capabilities with a Dropbox Sign integration.
11 Develop a release plan for mobile and web apps.
12 Secure a user satisfaction rate of above 85% among early adopters.
13 Achieve a system usability scale (SUS) score of at least 85 in user acceptance testing.
We’ll review your codebase, enhance it where necessary, and implement new functionality to help you reduce development time and costs.
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Solutions
With the project scope, deliverables, and timeline agreed upon, we revised the codebase, improved user flows, and implemented the new functionality. Throughout our MVP development process, we regularly checked in with our client. This way, we aligned with the company’s priorities and needs.
In line with our client’s requirements, we introduced the intermediary role to the platform and reworked the payment and transaction flows to build the escrow mechanism.
Even though we were creating an MVP for our client, we remained mindful that the product would have to support future growth. So, we ensured the codebase was flexible and scalable in the long run and could easily support feature updates.
To facilitate regulatory compliance for our client and their customers, we restructured deal automation and assignment statuses, developed financial reporting capabilities, and integrated a compliant eSignature solution, Dropbox Sign. Implementing multi-factor authentication and encryption, in turn, ensured sensitive data remained safe within the platform.
As our client had limited resources for building the MVP, we used the existing designs to create the interface for new flows and built Android and iOS mobile apps with Capacitor, a cross-platform native runtime for apps. Then, we converted the mobile apps into a progressive web app to maximize cost savings even further. All of that reduced development costs by 41% and sped up the process by 46%.
Intermediary role
Before implementing the escrow mechanism into the payment and transaction flows, we had to add a new role to the platform—intermediary. This role enabled the product to securely hold onto the buyer’s payment until they receive the agreed-upon item or service and approve it within the app.
We implemented the new role with as few reworkings as possible, all while ensuring the platform functioned as intended and remained scalable in the long run. Our thorough testing ensured the platform’s smooth performance on devices with different computing resources and internet connectivity.
Plaid integration
Instead of developing banking integrations from scratch, fintech companies like our client can use Plaid. This tool facilitates connecting third-party financial accounts, initiating payments, and verifying account holder information.
Plaid integration was crucial for implementing the escrow mechanism into the platform promptly and cost-effectively. It streamlined deal review, negotiation, payments, and transactions following the negotiated deal. We also ensured it supported cancellation, dispute, and return functionality.
Thanks to our thorough testing, Plaid integration proved smooth and secure, all while streamlining the associated user flows.
Multi-factor authentication and role-based access
To ensure regulatory compliance and secure user data, we implemented seamless multi-factor authentication for logging in and authorizing transactions.
In addition, we provided role-based access to the platform. Differentiating the displayed functionality and permissions based on the role addresses typical cybersecurity vulnerabilities. It also enhanced the UX by tailoring it to the user’s needs.
With multi-factor authentication, we secured access to the platform, mitigating the risk of malicious actors hijacking users’ accounts with stolen login credentials. Role-based access, in turn, enables granular permissions and enforces the principle of least privilege to protect sensitive data.
Revamped payment and transaction flows
Following the codebase review, we identified the software components that conflicted with the new intermediary role and escrow functionality. Unsurprisingly, most of the conflicts resided in the payment and transaction flows.
So, we had to rework these flows substantially within the backend and the frontend. With Plaid, we also enabled users to easily dispute or cancel orders or return provided goods while mitigating the risk of foul play on buyers’ and sellers’ sides.
As a result of our rework, the new functionality integrated seamlessly into the existing codebase, ensuring performance, security, and future scalability. It also supported various scenarios (cancellations, disputes, returns), crucial for the product’s regulatory compliance.
Refined login and sign-up
The existing platform contained several friction points within the login and sign-up processes. We resolved some with the Plaid integration and others with more robust data validation rules and minor UX improvements.
These improvements to the user experience made signing up and logging in simpler and faster. As a result, we saw substantial increases in the task success rate and usability score for this user flow during our testing, contributing to a higher user satisfaction rate post-launch.
Streamlined assignment and order processes
The original platform’s assignment status and deal automation features were also too complex for users’ business needs. So, we simplified both flows based on the existing user feedback.
These improvements made the platform user-friendly, resulting in a higher user satisfaction rate and a solid 71 net promoter score. Several changes we made to this flow also ensured the platform’s regulatory compliance.
Financial reporting capabilities
The financial reporting feature wasn’t included in the previous version of the platform. So, we implemented the logic and user flows to automatically generate financial statements and other documents in a suitable file format.
These capabilities made reporting significantly easier for the platform’s early adopters. Our attention to reporting flexibility and customizability ensured that businesses in various jurisdictions and industries could adapt reports to their reporting needs. Our templates, in turn, simplified regulatory compliance for users’ accounting and financial reporting.
Release plan and mobile app launch
To facilitate our client’s product launch, we prepared a detailed release plan for the Google Play Store, Apple’s App Store, and the online version of the platform. With the client’s approval of the developed product, we rolled out both mobile apps. As they fully complied with the stores’ developer guidelines, listings were approved on the first go.
Once the app stores accepted the mobile apps, we moved them into the production environment. We also closely monitored the live app to apply hotfixes right away whenever necessary.
While we focused on the deployment and rollout, our client could dedicate internal resources to marketing and sales. Hence, the company could use its resources effectively, all while avoiding the risk of ineffective or poorly executed rollout.
Tech stack
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Impact
Following our involvement in the project, our client received a reworked platform—two native mobile apps and a progressive web app (PWA) for online access.
Our forward-looking approach ensured the MVP was easy to fine-tune and change according to real-world user feedback in the long run. At the same time, the platform checked off all regulatory and security requirements. Thus, thanks to our tech stack choices and development approach, it could be launched fast and on a budget.
All in all, our client could reap the following benefits from our involvement in the project:
We’ll investigate all applicable security and privacy regulations and standards and ensure your product complies with every single one.
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By collaborating with Darly Solutions, there is a significant improvement in the project's quality of codes compared to their original codebase. They lead efficient project management and keep the client updated with their reports. They're a flexible team that delivers promising results. They don't just do as they're told, they actively participate in the design process, which is going to yield us a much better platform in the end.
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