Business Model - PM Advisors Sdn Bhd

The terminal deployment business model started off as direct purchase by acquirers and terminal maintenance outsourcing to terminal vendors. The disadvantages of this old model is the perennial cycle of Capex proposal, justification, approval, procurement process, delivery, pressure on utilization of Capex asset to generate income and finally insufficient stock to support the business growth. Then the whole perennial cycle restarts again. The greatest disadvantage of this old model was the inefficient deployment of Capex resources to support this marginal or negative profitability in the acquiring business.

PMA management was the game changer on terminal rental model having started it in 2000. The advantages of rental model are zero Capex, all based on Opex, and every Opex cost incurred tied to income generation. The disadvantages of rental model are the higher Opex cost and continuing paying higher Opex rental cost after the typical 5 years depreciation period, instead of paying lower Opex maintenance cost, given the usable terminal lifespan is 10 years.

PMA’s new leasing model will remove all the above disadvantages associated with the above two archaic models and make acquirers more competitive with a very low Opex cost, about 49% to 81% lower than the current rental model.

PMA’s new leasing model will help fulfilled the following needs of acquirers.

  • Lower operating expenses
  • Higher Return On Assets
  • Competitive advantages
  • Higher profit
  • Supplier and terminal reliability
  • Better customer service
  • Lower certification time and cost
  • Longer usable lifespan for terminal
  • Better risk management in supplier contingency plan
  • Branding
  • Others

Stay tuned for New Merchant Acquiring Outsource Model in the near future.