KARACHI: Pakistan’s fast-growing e-commerce sector is losing an estimated $1.61 billion annually at the checkout stage, highlighting a critical weakness in the country’s digital trade infrastructure despite rising consumer demand.
The figure emerges from a new white paper by Payoneer, which estimates that merchants across Asia collectively lose around $72 billion each year due to checkout inefficiencies. Pakistan’s share of these losses underscores the scale of the challenge facing local online businesses.
The largest portion of the loss, approximately $0.97 billion, stems from cart abandonment, accounting for more than 60 per cent of the total. Settlement delays contribute a further $0.46 billion, while foreign exchange and payment-related inefficiencies account for $0.18 billion.
Industry analysis indicates that many transactions fail to convert at checkout due to payment declines, unclear pricing structures, and delays in settlement. These issues persist even when consumer intent to purchase is strong, limiting the revenue businesses ultimately capture.
Cart abandonment remains the primary driver, often triggered by unexpected fees, lack of pricing transparency and friction in payment processes. The problem is particularly acute for cross-border sellers, as international buyers increasingly expect localised payment options and pricing in their own currency.
At the same time, complex payment chains and foreign exchange costs continue to erode margins. Transactions routed through multiple intermediaries reduce the final value received by merchants, while delays in settlement restrict access to funds and strain cash flow.
The report points to a structural gap in the country’ e-commerce ecosystem, where expanding global reach is not yet matched by efficient financial infrastructure. Analysts say improving payment flows, offering localised checkout experiences, and accelerating settlement cycles could significantly enhance conversion rates and unlock liquidity for businesses.
