Choosing the Right Payment Solution for Your Business: 3 Key Factors to Consider

In today's increasingly global and digitalized economy, it's never been more critical for small and micro businesses in Southeast Asia to adopt cashless payment solutions to stay competitive. With countries like Singapore, Malaysia, Indonesia, and the Philippines seeing rapid digital payment adoption, businesses need to stay ahead by offering convenient and secure payment options.

Whether you're a personal trainer, retail entrepreneur, or private driver, choosing the right payment solution for your small business can influence which customers engage with your business, enhances customer experience and ultimately boosts revenue. But with so many options available—how do you decide which one is right for you?

Here are 3 key things to consider in your decision.

1. Defining Your Business Needs

Before selecting a payment provider, define your must-have requirements:

• What are your customers preferred payment methods?
• Do you operate online, offline, or both?
• How much are you willing to invest in tech integration and set up?

According to a recent Visa study, contactless payments are the most preferred payment method in Singapore. A personal fitness trainer or fitness instructor that is constantly on-the-go conducting 1-on-1 sessions or bootcamps may find they can benefit from the ease and mobility of a Tap to Phone payment solution, such as nashi. The nashi app allows them to offer card payments without having to lug around clunky hardware.

However, a retailer which may have a combination of both in-store, online, and in-person payments such as at popup events may need a much more complex solution that allows for integration of both online and offline payments through a service provider like Stripe. This complexity requires some further tech integration.

2. Selecting Payment Methods

When selecting a payment solution, it's important to ensure it supports a range of payment methods that cater to your customer base. Not having your customers' preferred payment method can reduce the total basket size or worse, lose the sale. Popular payment methods include:

• Credit and Debit Card (such as Visa, Mastercard)
• Mobile Wallets (such as Apple Pay, Google Pay)
• QR Code Payments (widely used across Southeast Asia)

If your business operates in the tourism sector—such as tour guides or souvenir shops, it's important to select a payment solution that supports multiple currencies and caters to international customers. Tourists often prefer contactless and mobile wallet payments for convenience and security. They also may not have access to local payment methods such as PayNow or DuitNow.

3. Understanding and Comparing Costs and Fees

The underlying cost structures of different payment methods can be increasingly complex - especially for business owners that may not be familiar with industry terms and nuances. Look for a provider that offers:

• Transparency in total cost per transaction
• No hidden application, setup, and monthly fees
• Competitive foreign exchange rates (if applicable)

Payment services providers, such as NETS, may offer a variable pricing model where the cost of the transaction differs each time based on card type, card issuing bank, and more. This may work for some businesses, but for smaller businesses we recommend using a provider that provides a flat fixed fee per transaction to avoid surprises and fully understand your operating costs.

Additionally, some providers may charge monthly fees for the use of their software and terminal devices. The upfront cost of a contactless card terminal can be a financial burden for a business just getting started. For this, an app like nashi which enables contactless Tap to Phone payments without any hardware is an excellent choice.

Choosing the right payment solution for your small business depends on several factors, from where you intend to operate your business, your customers' preferences to the resources you can invest in developing a payment solution. If you're looking for an affordable, user-friendly solution tailored for small businesses in Southeast Asia, nashi offers an easy way to accept card payments—without the hassle of traditional setups.