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The company
Codeway is redefining industry standards with apps that blend AI and mobile technology.
Founded in 2020 in Istanbul, the company has reached over 300 million users worldwide in just five years, transforming complex AI technologies into user-friendly solutions.
Their portfolio spans more than 60 mobile and web products across generative AI, productivity, visual editing, and entertainment.
Flagship apps like Chat & Ask AI, Cleanup, and Wonder AI Art Generator consistently rank among the most downloaded globally, while newer products like Retake, Learna, and SmartNoter continue to gain international traction.
The challenge
Rapid global expansion brought Codeway face-to-face with operational challenges that were pulling crucial resources away from their core mission of AI innovation.
Platform commissions were eating into margins, and with SKAN limitations the team made the decision to shift growth to the web. But internal resources were consumed by payment and billing support operations - backend tasks Apple took care of in the iOS ecosystem were now the responsibility of the Codeway team.
These processes required constant manual intervention from development and finance teams, diverting talent from product development and growth initiatives. Managing tax compliance across different countries manually proved both time-consuming and error-prone too.
As Codeway expanded into more international markets, this challenge became increasingly unsustainable, creating operational inefficiency and significant compliance risks.
The most damaging aspect wasn't the direct financial cost, but the opportunity cost…
The time we spent on operational tasks could have been better allocated to growth initiatives, improving on-site conversions, or exploring new monetization strategies.
Gökhan Gezer, Sr Product Manager, Codeway
For a fast-moving technology company where agility and innovation speed directly impact competitive advantage, this burden was particularly challenging.
The solution
Codeway needed a comprehensive payments and billing solution rather than a simple Payment service Provider (PsP).
A strategic partner instead of another tool adding more complexity.
Codeway took a research-driven approach, tapping into their network for insights and analyzing solutions used by other players in their space.
Rather than relying on demos, we focused on in-depth research and peer feedback to understand which providers had a strong reputation in the subscription business space."
Gökhan Gezer, Sr Product Manager, Codeway
With a hands-on, consultative approach from the very first interaction, paired with the Merchant of Record model which operates in a similar way to the App Store but for web purchases, Codeway knew they had found a partner to help massage their growing pains.
The implementation process proved as smooth as promised.
Codeway's team completed integrations at pace with consistent support throughout.
Direct communication channels with Paddle's technical team, including accessible Slack support, ensured prompt responses to any questions.
What ultimately impressed us most was Paddle's deep expertise in the subscription space and the level of time and attention they dedicated to us throughout the process.
Adem Yavuz Yılmaz, Lead Product Manager at Codeway
The results
$500,000 recovered automatically
Involuntary churn, often the result of billing errors, failed payments, or insufficient funds, can contribute significantly to overall customer attrition.
Paddle Retain helps mitigate this by automatically reattempting failed payments and prompting customers to update their payment details.
It employs intelligent retry logic that considers factors such as the day of the week, failure codes, card type, and payment location to maximize recovery rates.
Paddle's Retain feature sends personalized, localized notifications via email, in-app messages, or SMS, guiding customers through a seamless, no-login process to update their payment information.
This comprehensive approach assists businesses in reducing involuntary churn and enhancing customer retention.
Codeway achieved a 36% recovery rate on previously failed payments, translating to approximately $500,000 in recovered revenue. A direct result of using Retain's full feature-set, which ranges from cancellation flows through to payment recovery.
It’s been a remarkable boost to our bottom line.
Adem Yavuz Yılmaz, Lead Product Manager, Codeway
Identifying new monetization strategies
One of Paddle’s biggest strengths is its exceptional Customer Success team, which regularly engages with us to discuss monetization strategies across different countries.”
Gökhan Gezer, Sr Product Manager, Codeway.
Codeway has tapped into the Paddle team’s extensive knowledge of different payment preferences in different markets and performance benchmarks against industry peers.
This collaborative approach extends to product development too, with Paddle's VP of Product visiting Codeway's office to better understand their needs.
Having a partner that's deeply involved and willing to brainstorm with us on our monetization approach has been incredibly valuable. It's not just about providing a platform, but also about being a strategic partner that helps us identify new opportunities.
Gökhan Gezer, Sr Product Manager, Codeway
An operational transformation
Paddle has fundamentally transformed Codeway's operational efficiency across several teams.
The finance team has experienced a dramatic reduction in workload as Paddle took over the complexities of sales tax compliance across multiple countries, eliminating manual processes that were both time-consuming and created compliance risks.
Paddle has enabled us to scale faster, reduce compliance risk, and focus more on growth rather than administrative burdens.
Adem Yavuz Yılmaz, Lead Product Manager at Codeway
Codeway can now enter new markets quickly without getting bogged down by local regulations.
The finance team can do what they do best, and the growth team can focus on meaningful expansion without any sleepless nights.
The future
Codeway's ambitions remain focused on staying ahead in the ever-changing world of mobile and AI.
With Paddle taking care of payments, compliance and customer billing support, the company can concentrate on scaling their portfolio across new verticals, expanding into untapped markets, and continuing to integrate cutting-edge AI technologies.
These recoveries have directly contributed to profitability without compromising on user experience, enabling us to reinvest in building even better products and user-centric features. It's a great example of how operational excellence and great product thinking can go hand-in-hand.
Adem Yavuz Yılmaz, Lead Product Manager, Codeway
As Codeway continues to grow globally, they have a payments partner adept at scaling alongside their company, accelerating efforts rather than dragging on them.
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