The business question
Which transactions needed a different price?
Payment margins varied by currency and transaction value, but the blended view did not show which categories were profitable.
Without revenue, cost and contribution by transaction category, pricing decisions relied on an average that concealed underpriced segments.
- My contribution
- Transaction economics, segment pricing and sensitivity analysis
My approach
From the source data
to a commercial answer.
Rebuild the economics
I calculated revenue, direct cost and contribution at transaction level so each category could be assessed on its own economics.
Compare the segments
I segmented the book by currency, value band and customer type to identify where blended rates concealed differences in margin.
Test the pricing options
I assessed price sensitivity and the volume exposed to each proposed change, giving leadership an uplift and downside view.
Data used in the analysis
- Transaction volumes and values
- Currency categories
- Existing rate cards
- Direct processing costs
- Margin per transaction
- Customer behaviour data
The recommendation
Reprice by currency and value tier
Reprice by currency band and value tier, while holding rates in price-sensitive segments. Present the expected uplift and downside for each change so leadership can approve moves individually.
What I delivered
- Segment level pricing model
- Contribution margin view per transaction
- Sensitivity table showing revenue at risk
- Executive pack with staged rollout order
The outcome
What changed
for the business.
Doubled margin on USD transactions. Measured against the documented pre-change baseline.
- Margin visible per transaction category for the first time
- Pricing moved from blended averages to segment economics
- Underpriced categories identified with a quantified uplift each
The reported 2× result applies to USD transaction margin, measured against the pre-change baseline. Transaction volumes and rate cards remain confidential.
Explore an illustrative exampleA simplified view of the approach, using example figures.
This example explains the method. The figures are illustrative and should be read separately from the project outcome.
Transaction Ledger
- TXN-4471USD1,240.003.1%6.4%
- TXN-4472LKR84,5002.8%2.9%
- TXN-4473USD312.503.4%7.1%
- TXN-4474GBP890.003.0%5.8%
- TXN-4475LKR12,9002.6%2.7%
LKR volume holds its rate. The foreign currency book was the one carrying unpriced value.
Let’s work on it
What decision
is on your desk?
Tell me what you’re trying to decide, what feels unclear and when you need an answer. We’ll start with a short conversation.
Direct collaboration · Scoped engagements · Fixed fees