New research from Global Payments and its Australian subsidiary Ezidebit has identified the considerable effects of payment complexity on small and medium businesses (SMBs) in Australia.
The 2025 Ezidebit Australian SMB Payment Pulse, which included market analysis and a survey of more than 300 businesses from diverse sectors, details both the economic and operational consequences that arise when businesses manage multiple payment systems and providers.
Administrative burden
The study found that the average small business spends more than 22 hours each week on payment-related administration. According to the report, 22.6 hours per week are lost to tasks such as reconciling accounts across different systems, pursuing overdue payments, and resolving payment disputes. This was highlighted as a significant barrier to growth for businesses already balancing limited resources.
Late or missing payments also persist as a problem. The research showed that 54% of SMBs regularly experience late or missing payments, with one in six payments arriving late. This disrupts cash flow, which is regarded as a central concern for business continuity.
Impact on customer retention
The inability to cater for different customer payment preferences - described in the report as 'the payment gap' - has direct consequences for customer retention. One in four businesses surveyed acknowledged losing customers because they did not offer preferred payment options. The report pointed out that most businesses manage an average of 3.5 payment methods and use 2.1 different providers, with this number rising to 4.4 payment methods in larger businesses.
Security and trust
The complexity brought on by multiple systems and providers extends to increased security risks. Some 27% of SMBs raised concerns about security in their payment processes, and 17% indicated that these apprehensions are expressed by customers, potentially eroding trust in the business. Security, therefore, represents not only a technical challenge but also a reputational risk for businesses reliant on digital transactions.
While a significant majority of businesses who use multiple payment providers (93%) expressed openness to consolidating providers, only 20% had actually undertaken consolidation. The report suggests that perceived barriers to changing or merging payment systems are holding many businesses back from making this transition.
Industry response
"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," Masseh Haidary, CEO Payments Oceania at Global Payments, said.
Masseh Haidary further explained the cost of inefficiency, stating, "Our research tells us that SMBs who haven't consolidated their payment platforms with one provider are losing nearly 24 hours a week in administration." He continued, "Cashflow is the lifeblood of SMBs and when you're busy chasing late or missing payments, you're not focused on growth. Critically, complexity from multiple systems and providers is also posing security concerns for businesses and their customers, further eroding trust and retention."
He also noted the broad consequences of fragmentation: "The combination of multiple providers and processes is causing significant lost time, lost revenue and security risks that's holding business owners back from growing their business and customer base. This data shows these impacts increase with business size and the number of fragmented providers."
On potential solutions, Masseh Haidary recommended a move towards comprehensive payment platforms, saying, "The easiest way to alleviate these business pressures is to shift to a proven all-in-one payments provider like Ezidebit that can accept all payment types - such as online, in-person, direct debit, PayTo, BPAY - in one secure platform." He added, "The case for SMBs unifying the back end of payments couldn't be stronger and our 2025 Payment Pulse offers practical steps to navigate the perceived challenges to consolidation."
Industry context
The issues outlined in the report come at a time when many Australian businesses face increased operational pressures and customer expectations around digital payments. SMBs are grappling with fragmented provider arrangements even as new technologies and payment methods, such as PayTo and real-time digital payments, continue to grow in popularity.
The move to consolidate payment platforms may present practical challenges, including perceived barriers to change and concerns about transitioning business-critical systems. Nevertheless, the research suggests that addressing payment complexity could result in significant time savings, reduced administrative costs, improved customer retention, and enhanced security for SMBs.
