Rapyd’s Pivot Playbook: How Customer Pain Points Led to a $15B Infrastructure Play

Rapyd’s Pivot Playbook: How Customer Pain Points Led to a $15B Infrastructure Play

Three months of runway left. A team of engineers about to lose their jobs. And one final investor meeting in a coffee shop. In a recent episode of Category Visionaries, Arik Shtilman shared how Rapyd transformed from a failing consumer wallet startup into a fintech infrastructure giant processing $75 billion annually.

The Original Vision: Competing with PayPal

Fresh off a successful exit, Arik and his co-founders launched Cash Dash in 2015 with a clear mission: build a consumer e-wallet to help travelers avoid FX fees. But they quickly discovered the complexity of financial services infrastructure. “We stumbled into every single shit show that exists on planet Earth when you’re trying to build financial services product,” Arik recalls. “We had no knowledge in the space, like nothing. We didn’t know anything about it. Regulation, compliance, sanction screening, KYC, KYB, all this stuff that you need to deal with.”

The Breaking Point

By 2017, the situation was dire. “I already announced to the employees that I’m shutting it down,” Arik remembers. With just one investor meeting left, he made a last-ditch effort in a coffee shop. Looking across the street at a currency exchange booth, he simplified his pitch: “I told him, you see this? I want to take them out of business.” The investor immediately committed $5 million.

The Hidden Opportunity

While building Cash Dash, the team had unknowingly created something more valuable than their original product: robust financial infrastructure. Looking at the fragmented fintech landscape, they had an epiphany. “How can it be that there are no infrastructure players in financial services?” Arik wondered. “Every company is around three components: an acquirer, an issuer, a KYC specialist, an FX specialist. Like, what the hell is this mess?”

The Pivot to Infrastructure

This realization led to a complete transformation. They rebranded as Rapyd and shifted from competing with PayPal to building the AWS of fintech. But even with clear product-market fit, they struggled to articulate their value proposition until a frustrated conversation in an elevator yielded their breakthrough positioning: “It’s very simple. It’s like Amazon AWS. But for fintech.”

Lessons in Market Opportunity

Rapyd’s pivot offers several key lessons for founders:

1. Your biggest pain points might be your biggest opportunity
2. Sometimes the infrastructure you build becomes more valuable than your original product
3. The best opportunities often come from questioning industry inefficiencies
4. Clear positioning can transform market understanding

Today, Rapyd serves 215,000 clients across 106 countries. But Arik sees this as just the beginning: “Fintech as a service in 2023 is at the same stage that cloud computing was in 2010… We will be a business that is worth 60, 70, 80, 100 billion dollars.”

The story of Rapyd’s pivot demonstrates a crucial truth for founders: sometimes your most valuable asset isn’t your original vision, but the infrastructure you build while pursuing it. The key is remaining observant enough to recognize when your side project might be worth more than your main product.