Chapter 5: Optimizing the total cost of payments
36% of businesses are looking to increase net revenue by finding ways to lower the cost of payments
In Singapore, businesses are especially attuned to rising operational costs. With fierce competition and high digital adoption, cost-efficiency is not just a goal—it’s a survival strategy. The most effective way to optimize payment costs is through a holistic strategy that targets savings across the entire payment ecosystem. Whether it's adopting lower-cost payment methods, consolidating vendors, or minimizing fraud, there are significant opportunities to reduce costs—if you know where to look.
Finding 01
Businesses find ways to optimize payment costs
A wealth of cost optimization opportunities can be found in your payment processing. For example, local payment methods can help avoid interchange fees, and smart routing can both reduce costs and increase authorization rates. But these savings will only be achieved if your payment provider passes them on to you (by billing with Interchange++).
Finding 02
Operational inefficiencies are a financial drain
Managing payments on a day-to-day basis can be a significant drain on resources. Retailers often spend hours (even days) each month reconciling transactions across fragmented systems. And the more payment vendors involved, the more complex the web of partnerships, contracts, integrations, and reporting becomes.
Finding 03
Fraud is still top of mind when it comes to cost
Payment fraud is damaging in every sense, eroding profit margins and undermining consumer trust. While the impact varies across regions and age groups, one thing is clear: AI is now essential in the fight against it. Fraud continues to be a major financial drain and a source of consumer anxiety. In 2024, it was reported that fraud cost the global retail industry SGD 3.6 billion, and 33% of Singaporean consumers felt more unsafe shopping than a decade prior. The significant losses reported by Singaporean retailers – 8% losing SGD SGD 24-44 million to fraudulent attacks in the past 12 months – underscores just how high the stakes can be and reaffirms this persistent challenge.
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