Full Breakdown
The Hidden Costs of Payment Complexity for Australian SMBs
9/25/2025, 11:23:53 PM
Overview of Payment Challenges
Recent research conducted by Global Payments and its Australian subsidiary, Ezidebit, highlights significant challenges faced by small and medium businesses (SMBs) in Australia regarding payment systems. The 2025 Ezidebit Australian SMB Payment Pulse report, which surveyed over 300 businesses across various industries, reveals that SMBs are losing substantial time and resources due to fragmented payment processes. On average, these businesses spend over 22 hours each week on payment administration tasks, such as reconciling systems, chasing overdue invoices, and resolving disputes.
Fragmentation and Its Consequences
The study indicates that fragmentation is a prevalent issue, with SMBs typically managing approximately 3.5 different payment methods across 2.1 providers. Larger businesses face even greater complexity, averaging 4.4 payment methods. This fragmentation not only burdens operational efficiency but also impacts customer retention. A quarter of the surveyed businesses reported losing customers due to their inability to accommodate diverse payment preferences, a phenomenon referred to as "the payment gap."
Security Concerns
Security issues further complicate the payment landscape for SMBs. The report notes that 27% of businesses cite security concerns as a significant pain point, with 17% indicating that these issues erode customer trust. Such concerns can hinder customer relationships and ultimately affect business stability.
Barriers to Consolidation
Despite the recognition of these challenges, only 20% of SMBs have consolidated their payment systems with a single provider. The report highlights that 93% of businesses using multiple providers are open to consolidation, yet perceived barriers to change prevent many from streamlining their payment processes. Masseh Haidary, CEO of Payments Oceania at Global Payments, emphasizes that the disconnect between rapid technological advancements in the payment industry and the practical needs of SMBs exacerbates these issues.
Official Statements & Responses
Masseh Haidary stated, “Australian SMBs are at a tipping point when it comes to payments, and our 2025 Payment Pulse shines a spotlight on the hidden costs they’re incurring when managing multiple systems to balance their books and meet customer expectations.” He further noted that businesses that have not consolidated their payment platforms are losing nearly 24 hours a week in administration.
Recommendations for Improvement
To alleviate the pressures faced by SMBs, Haidary suggests transitioning to an all-in-one payments provider like Ezidebit, which can accommodate various payment types—such as online, in-person, direct debit, PayTo, and BPAY—within a single secure platform. The report also offers practical steps for SMBs to navigate the perceived challenges associated with consolidation.
Conclusion
The findings from the 2025 Ezidebit Australian SMB Payment Pulse underscore the urgent need for small and medium businesses to address payment complexity. By consolidating payment systems and enhancing security measures, SMBs can improve operational efficiency, customer satisfaction, and overall business stability.
