Pakistan’s e-commerce sector is missing out on substantial revenue every year due to difficulties in handling cross-border payments.
A recent white paper from Payoneer estimates the annual loss at around $1.61 billion. Most of these losses happen right at the checkout stage, when customers decide not to complete their purchases.
The report forms part of a larger picture across Asia, where e-commerce and direct-to-consumer sellers together lose an estimated $72 billion annually because of similar payment inefficiencies.
Where the Money Disappears
The Payoneer study breaks down the losses into three main areas:
- Cart abandonment stands as the single largest issue, accounting for $0.97 billion — more than 60 percent of the total. Customers often leave items in their carts when they face complicated payment steps, unexpected fees, or a lack of familiar local payment methods.
- Settlement delays come next, costing businesses about $0.46 billion per year. Slow processing times affect cash flow and put extra pressure on sellers, particularly those who export goods.
- Foreign exchange costs and other charges add another $0.18 billion in losses, directly cutting into profit margins for online merchants.
These problems make it harder for Pakistani businesses to take full advantage of demand from international buyers.
Impact on Growth
Payment friction not only reduces immediate sales but also limits the ability of e-commerce sellers and exporters to expand. When buyers abandon carts or payments take too long to reach sellers, businesses struggle to maintain steady growth and invest in scaling up operations.
The report notes that smoother payment experiences could help increase conversion rates and support stronger export performance.
