Checkout Payment Issues Cost Pakistan Ecommerce $1.61B Annually

Pakistan’s e-commerce industry is incurring an estimated annual loss of $1.61 billion at the checkout stage due to inefficiencies in cross-border payment systems, according to a report issued by Payoneer.

These losses form part of a wider $72 billion shortfall across Asia, attributed to persistent payment-related challenges that hinder transaction completion rates and negatively impact business revenues.

The report identifies cart abandonment as the primary factor, contributing approximately $0.97 billion, which represents over 60 per cent of the total losses. Settlement delays account for an additional $0.46 billion, while foreign exchange fluctuations and associated payment costs contribute around $0.18 billion.

It further highlights that a significant number of transactions remain incomplete due to payment friction, unforeseen charges, and prolonged settlement timelines, all of which deter consumers and strain merchant cash flow.

Additionally, the findings underscore a growing expectation among global consumers for localised payment solutions and clear pricing structures, while complex payment frameworks and delayed fund settlements continue to adversely affect conversion rates and profit margins.

According to the report, enhancing checkout processes, optimising payment infrastructure, and reducing settlement timeframes could enable businesses to recover lost revenue and strengthen Pakistan’s position in cross-border digital commerce.