Fragmented payments system holds back Southeast Asian SMEs

KPay’s unified platform addresses SMEs’ time-intensive payment challenges.

Fragmented payment options and time-consuming reconciliation processes are hindering growth for Southeast Asia’s small and medium enterprises (SMEs), according to Christopher Yu, President and Chief Financial Officer at KPay.

While cash transactions still account for 70% of SME payments in the region, businesses that attempt to adopt digital solutions often face a disjointed array of options, making management complex and costly.

Yu explained that SMEs currently spend an average of 127 hours per month on manual reconciliation due to scattered payment processes. KPay’s platform aims to cut down on this inefficiency, offering SMEs a single, seamless interface to manage multiple payment methods and reduce reconciliation time significantly.

“Historically, credit card issuances were primarily for large enterprises… but in today’s world… we’re seeing that as one of the fastest-growing segments,” Yu said, highlighting how KPay’s ecosystem is making these tools available to smaller businesses.

KPay’s platform also enables SMEs to access timely, actionable data, which Yu emphasized as essential for decision-making and growth. “When they’re able to use and access timely data… they can actually do their business better,” Yu stated, citing a 15-20% increase in transaction volume among SMEs using KPay’s value-added services.