Problem: Google Pay has observed a gradual 10% drop in payments over a few months.
Initial Exploration:
The candidate begins by clarifying the nature of the decline — gradual and sustained — and proposes analyzing both external and internal factors.
Scoping the Issue:
• Demographics & Geography: The decline is uniform across all user segments and locations.
• Device Type: No specific drop-off among Android or iOS users.
• Campaigns or Marketing: No recent campaign from Google Pay that could be linked to the drop. A PhonePe campaign did coincide with a slight dip but doesn’t account for the full 10%.
• Seasonality: No recurring seasonal trends to explain the decrease.
• Competition: No significant competitive threat identified.
Deep Dive – Internal Product Analysis:
• Data Accuracy: Event tracking and analytics systems are confirmed to be unchanged and accurate.
• User Journey Mapping: The candidate outlines the key user payment flows:
1. QR code payments in person (e.g., stores or transport).
2. Merchant app redirection to Google Pay (e.g., Swiggy).
3. Manual initiation via the Google Pay app (especially with Apple devices).
Segmentation & Funnel Breakdown:
• The candidate distinguishes between merchant transactions and peer-to-peer/bank transfers.
• The drop is isolated to merchant transactions.
• Peer-to-peer and QR code scans for non-merchant payments are stable.
Root Cause Hypothesis:
• The candidate suspects the issue lies within the merchant transaction flow, particularly in the pop-up (widget) experience that prompts users for payment after redirection.
• They point out from personal experience that sometimes:
• The pop-up doesn’t appear.
• Merchants are not listed under “recent merchants”.
• The payment widget is missing on the merchant detail page.
Discovery:
• The interviewer confirms a recent release replaced SMS-based prompts with in-app pop-up widgets for merchant transactions.
• Post-release data shows a significant drop in user clicks on the pop-up — suggesting users aren’t seeing the prompt, hence not completing payments.
Conclusion:
• The drop in merchant payments is attributed to a failed adoption of the new pop-up widget system.
• The candidate recommends focusing on fixing this visibility issue first. If the drop continues, deeper investigation into technical failures (e.g., server issues) would be needed.
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