Pakistan’s fast-growing e-commerce industry is losing an estimated $1.61 billion annually due to inefficiencies at the checkout stage, highlighting a major structural challenge in the country’s digital payments ecosystem.
According to a recent white paper by Payoneer, merchants across Asia lose nearly $72 billion each year from checkout-related friction, with Pakistan accounting for a notable share of those losses.
The report shows cart abandonment remains the largest source of revenue leakage in Pakistan, costing businesses around $970 million, or more than 60% of total losses. Failed transactions, unexpected charges, and payment drop-offs continue to prevent many purchases from being completed despite strong buyer demand.
In addition, businesses face around $460 million in losses due to settlement delays, which slow cash flow and limit liquidity needed for order fulfillment and expansion. Another $180 million is reportedly lost through foreign exchange costs and payment-related leakage, reducing margins for merchants involved in cross-border trade.
Industry experts say the issue is especially pressing for exporters and online sellers serving international customers, where localized payment options and transparent pricing in local currencies have become increasingly important for conversion.
The findings point to broader weaknesses in Pakistan’s digital trade infrastructure, where growing online demand is not yet fully supported by efficient payment systems and settlement networks.
Analysts suggest reducing checkout friction, consolidating fragmented payment relationships, and improving settlement speed could help businesses recover significant lost revenue. Expanding access to localized payment methods and streamlining cross-border transaction flows are also seen as critical steps.
As Pakistan seeks to strengthen its position in Asia’s digital economy, addressing checkout inefficiencies could unlock billions in additional revenue and support long-term growth in the e-commerce sector.
