Pakistan e-commerce sector loses $1.61 billion annually due to payment inefficiencies: report

Pakistan’s e-commerce sector is losing an estimated $1.61 billion annually at the checkout stage due to cross-border payment inefficiencies, according to a report by Payoneer. 

The losses are part of a broader $72 billion gap across Asia, driven by multiple payment-related challenges that limit transaction conversions and reduce business revenues.

The report said cart abandonment is the largest contributor, accounting for $0.97 billion, or over 60 per cent of total losses. Settlement delays contribute $0.46 billion, while foreign exchange and payment-related costs account for $0.18 billion.

It noted that many transactions fail to complete due to payment friction, unexpected charges and slow settlement processes, which discourage buyers and affect merchant cash flow.

The report also highlighted that global consumers increasingly expect localised payment options and transparent pricing, while complex payment systems and delayed settlements continue to impact conversion rates and margins.

According to the findings, improving checkout experiences, streamlining payment systems and accelerating settlement timelines could help businesses capture lost revenue and support growth in Pakistan’s cross-border digital trade.