ISLAMABAD – Pakistan’s rapidly growing e-commerce sector is incurring significant financial losses at the checkout stage, with inefficiencies in payment systems costing businesses an estimated $1.61 billion annually, according to a new white paper by Payoneer.
The report highlights that merchants across Asia collectively lose around $72bn each year due to checkout-related challenges, with Pakistan representing a notable share of this gap.
A major portion of the losses in Pakistan — approximately $0.97bn — stems from cart abandonment, which accounts for over 60 per cent of the total. Analysts attribute this to friction during the checkout process, including unexpected charges, payment declines, and lack of pricing transparency.
Settlement delays contribute a further $0.46bn in losses, while $0.18bn is lost due to foreign exchange (FX) costs and other payment-related inefficiencies, the report noted.
Despite strong consumer demand, many transactions fail to convert into completed purchases, limiting revenue realisation for businesses. The issue is particularly acute for cross-border sellers, as international customers increasingly expect localised payment options and pricing in their own currencies.
Industry experts say complex payment systems involving multiple intermediaries further erode merchant margins, while delays in settlement cycles restrict cash flow, affecting businesses’ ability to fulfil orders and expand operations.
The findings point to structural weaknesses in Pakistan’s digital trade ecosystem, where financial infrastructure has yet to keep pace with the country’s expanding participation in global e-commerce.
Experts suggest that improving checkout processes, streamlining payment channels, and ensuring faster settlement could help address these inefficiencies. Introducing localised payment methods and transparent pricing, along with reducing fragmentation in banking relationships, may enhance conversion rates and unlock liquidity for businesses.
As Pakistan seeks to strengthen its position in Asia’s digital economy, addressing these bottlenecks could transform lost value into tangible growth for exporters and online sellers.
