Part 3: Strategic Considerations for Payment Costs (4 Q&As)
Minimising cost alone is not enough; strategic thinking matters. Success rate, experience, settlement speed, and FX optimisation often outweigh small differences in fee percentages. Antom combines technology and expertise to align payments with business goals.
FAQs
Many merchants focus solely on the lowest fee. While Antom offers highly competitive rates, fees should be only one factor when choosing a payment service.
In cross-border business, payments are not just the final step—they directly impact conversion rates, cash flow, and overall brand experience. Higher success rates mean fewer failed orders and more revenue; smoother experiences and fewer redirects increase completion rates.
More payment channels help reach new markets and satisfy diverse consumer preferences, while faster settlement improves cash flow and reduces financial risk. Hidden costs like currency exchange differences and cross-border fees can outweigh nominal service fees.
The strategic approach is to view overall payment efficiency as the core of cost management. It’s not about “who is cheapest” but “who is more efficient, stable, and supportive of growth.” Small improvements in success rate, settlement speed, or exchange spreads can deliver far greater benefits than minor fee differences.
Key considerations for strategic cross-border payments:
- Payment success rate: Determines revenue and system stability.
- Channel coverage: More channels and types improve conversion and retention.
- Payment experience: Simpler processes increase checkout completion.
- Settlement speed and cash flow: Faster funds availability enhances financial flexibility.
- Currency and cross-border costs: Hidden spreads and fees accumulate significantly.
Takeaway: True cost optimisation balances fees, experience, and efficiency. Using data-driven multi-channel strategies to achieve higher success rates, better UX, and faster settlements is the most sustainable way to reduce payment costs and drive business growth.
In payment systems, cost and success rate are often competing metrics. Choosing the lowest-fee channel may backfire if authorisation rates are low, risk controls are strict, or payment data is incomplete, leading to failed transactions and lost orders. In other words, saving on fees could mean paying with failures.
The smart approach is data-driven, not guesswork. Merchants can model success rate, transaction volume, average order value, and MDR fees together. For example, a $1M monthly cross-border merchant might save $2,000 with a low-fee channel, but a 5% drop in success rate could cost $50,000, which is far outweighing the savings.
Savvy merchants focus on overall efficiency rather than a single fee. Systems like Antom’s APO Smart Routing use real-time data and algorithms to select the optimal payment path, ensuring high success rates while optimising total cost for a win-win of low cost and high approval.
Integrating multiple local payment methods does increase development and maintenance costs, but the improvement in order completion and customer satisfaction usually justifies the investment. Decisions should consider local user preferences, payment success rates, average order value, and user retention.
Optimising payment experience follows the same principle. Features like “one-click payment” may require extra development, but they significantly reduce cart abandonment and increase conversion and repeat purchase rates. Offering incentives to steer users toward lower-cost payment options can create a win-win for experience and cost.
Investments can be evaluated by comparing the additional revenue from increased successful transactions and higher conversion rates against development and channel costs. Solutions like Antom’s EasySafePay allow first-time users to enable in-app payments without redirecting to another app, with subsequent transactions processed automatically. Choosing the right multi-channel strategy ensures every dollar spent drives order growth, improves overseas user payment willingness, and supports steady business expansion.
Cross-border payments involve more than just transaction fees. Slow settlement ties up funds, reducing cash flow efficiency and affecting inventory and market expansion. For cash-sensitive merchants, this can translate into additional carrying costs every month.
Currency fluctuations at settlement can also cause hidden losses. These costs often don’t appear in MDR fees but gradually erode profit, especially for high-value or high-frequency transactions.
Antom leverages expertise in risk management, settlement, and currency conversion. Optimised payment channels, smart routing, and hedging strategies accelerate fund settlement and reduce exchange risks. This balances payment costs with operational efficiency, protecting profit margins effectively.
Conclusion
Cross-border payments are complex, and costs extend far beyond visible fees. Understanding the interplay of transaction type, payment method, geography, and risk is essential for managing expenses and protecting margins.
Merchants who focus solely on low fees risk lost revenue, while those who optimise for payment success, settlement speed, and user experience can achieve both cost efficiency and business growth.
Solutions like Antom’s data-driven routing, local acquiring, and wallet integration help merchants navigate these complexities, stabilise costs, and turn payment strategy into a competitive advantage. Ultimately, a holistic, strategic approach to cross-border payments transforms cost management from a necessary burden into a driver of profitability and sustainable expansion.
