Chapter 5: Optimizing the total cost of payments
47% of businesses are looking to increase net revenue by finding ways to lower the cost of payments
In Malaysia, 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 retail survival strategy. The most effective way to optimize payment costs is through a holistic approach that targets savings across the entire payment ecosystem. Whether it's adopting lower-cost local 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 your business 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, eating into profit margins and undermining consumer trust. While the impact might vary from region to region and across different demographics, one thing is certain: AI is essential in the fight against fraud. The significant losses reported by Malaysian retailers, 28% losing MYR 2.85 million to MYR 3.42 million annually to fraudulent attacks in the past 12 months, underscore the stakes and reaffirm the persistent challenge.
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