Case study: How a US payment processor successfully increased prices despite inflation

Published on February 2, 2023

Despite higher inflation and escalating input costs eating away at profitability, one B2B payments platform continued to shy away from price increases. In the following case study, we share how this company overcame organizational challenges and introduced an ambitious pricing initiative, while sustaining strong customer relationships.

US inflation is at record highs. Particularly concerning is the dramatic rise of input costs like labor and raw materials. For example, the US employment cost index increased at its fastest annual pace in two decades in 2022. The Henry Hub Natural Gas Spot price has also nearly doubled since the start of 2022.

As input costs continue their steep, upward trajectory, some payment platforms have taken decisive action to protect margins. Simon-Kucher data suggests leading B2B software providers are targeting pricing levels between 7 percent to 20 percent higher to counter rising costs.

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