How do MatchMakers Solve the Chicken or the Egg Challenge?
Every payment system platform seeks to serve at least two separate customers, namely, merchants and consumers. The goal is to achieve critical masses where the merchants join for access to the large community of buyers and more people join the community to access the growing number of merchants within the platform. Entrepreneurs must build a proper ecosystem to support both groups and then sell the benefits to all sides. However, the key to the whole deal is to satisfy both groups of customers concurrently or the platform will not reach critical mass.
For instance, when the entrepreneurs talk to the merchants, they proclaim, “I have this revolutionary payments App that makes accepting crypto just as easy as accepting a credit card.” Their reaction is, “Wow, that’s awesome. How many people are using the app?” When the answer back is, “well, not many right now, but we just started beta testing.” The merchants basically tell the innovators to come back when they have consumers. Unfortunately, the typical consumer conversation isn’t going that well either without the proper ecosystem in place.
After all, the customers seek popular stores in the payment system platform to visit regularly, but in order for the platform to accomplish this, they must talk to the merchants about the tens of thousands of customers they already have in their community. Imagine going to customers and saying, “Hi, I have revolutionary App and and this transformative payments method accepts crypto as easily as credit cards” Their reaction is, “Wow, cool, where can I use it?” When the answer is, “well, not many places, yet, but we hope to get all the big names eventually.” Of course, the customers tell them to check back when they get the bigger merchants on board.
The problem statement is "How can we create an ecosystem to support both groups"