top of page

Payment Economics


The world of payments is very complex with multiple potential drivers of income and cost. Fee income, transaction income, interchange income, currency conversion income, penalty fee income, interest income..  and the list goes on. Product manufacture costs, transaction fees, scheme fees, fraud losses, credit loss, operating expenses...and the list goes on.

Overlay how customer behaviour can also vary significantly, and you'll recognise how difficult pricing and profitability forecasting can be.

Our consultants can help you with simple or highly sophisticated pricing and profitability tools, for use by a central finance / pricing function or by front-line sales staff.


If you're focused on profitability (and let's face it sooner or later you have to be), then having a laser focus on your P&L, product and customer performance is going to be critically important. 

Our consultants are past-masters are P&L diagnostics and can help you identify quick wins (and longer term opportunities) that will yield revenue growth and cost reduction.


A relentless focus on costs never hurt anyone! And for transactional products (cards in particular) understanding your cost-base and managing it tightly is essential. Processing fees, scheme fees and other payment rail fees can be highly complex and difficult to track and forecast. Many flex as customer behaviour varies which makes it doubly-important to understand and control them. 


Examples of how we could help you:

  • B2C product pricing model development

  • B2B service pricing model development

  • B2B pricing strategy development

  • Profitability forecasting model development

  • Cost forecasting, including scheme and processor fees

  • Customer segment profitability analysis

  • Scheme fee audits and cost management reviews

  • Interchange optimisation programs

  • Incentive offer analysis and net cost of trading reviews

  • KPI, MI and performance tracking definition and models

bottom of page