Why Most Pakistani e-commerce Stores Lose 20% of Revenue at Checkout

In Pakistan's rapidly expanding online retail sector, where platforms like Daraz and local startups process millions of transactions monthly, every sale is crucial.

Yet, a harsh reality persists: most e-commerce stores lose approximately 20% of potential revenue at the checkout stage. This isn't a minor issue; it's a significant leak in the sales funnel that turns committed shoppers into abandoned opportunities. With the market reaching around US$7-8 billion in recent years and projected to grow at 15-20% annually, addressing this could determine whether businesses thrive or merely survive.

But why does this happen so frequently? And how can store owners stem the loss?

In this blog, we'll explore the main reasons for these checkout failures, supported by recent data and insights from the Pakistani market. Then, we'll highlight a practical solution: XPay by PostEx, a payment gateway designed for local challenges. By the end, you'll have actionable steps to recover more revenue.

The Cost of Checkout Failures in Pakistan

Customers often add items to their cart but do not complete the purchase. Global cart abandonment rates stand at about 70%. In Pakistan, recent data shows rates of 74-75%. The main concern here is the final checkout stage, where customers enter payment details but still leave. This stage causes roughly 20% revenue loss for many stores, mainly because of payment problems that local conditions make worse.

Pakistan has over 116 million internet users. More than 80% of e-commerce traffic comes from mobile devices. Customers expect fast and simple processes. Outdated systems and infrastructure problems cause many failures.

The key reasons follow.

1. Redirects and Poor Payment Flows

A customer in Lahore browses jackets, adds one to the cart, and starts checkout. The system then sends them to a third-party payment page. The page loads slowly or fails on a weak connection. The customer leaves and buys from another store.

Redirects cause many problems in Pakistan, where mobile network speeds vary and customers want quick results. Reports show that 30-40% of drop-offs happen because of these interruptions. On mobile devices, short delays lead to higher abandonment.

2. Failed Transactions and Unreliable Gateways

A "Transaction Declined" message after entering details frustrates customers. Gateways in Pakistan sometimes face network issues, which increase failure rates. Banks may block certain processors, or COD orders face logistics problems.

These errors lower customer confidence. Credit card use remains low, but digital wallets such as JazzCash and Easypaisa gain users. When payment options do not match customer preferences, transactions fail. Technical errors play a large role in checkout failures.

3. Security Concerns

Pakistan faces many cyber threats. Customers pause if a payment page lacks clear security signs, uses no HTTPS, or asks for too much information. Surveys show that over 25% of customers mention security as a reason to abandon checkout.

In cities like Faisalabad or Multan, many users prefer COD (used by 70-75% of buyers) because they trust it more. Delays in COD confirmation can still cause doubt.

4. Limited Payment Options

Not all customers have credit cards. Many rely on mobile money. Stores that accept only cards lose sales. Long forms that ask for CVV, expiry date, and address create extra steps, especially on mobile screens.

Over 80% of e-commerce transactions in Pakistan occur on mobile devices. Forms that do not support quick entry or one-tap payment cause 15-20% of users to leave. Subscription renewals also sometimes fail.

These problems add up. One failed payment can reduce future sales from that customer by 30% because trust disappears.

How XPay Helps Recover Lost Revenue

Tools exist that address these problems directly. XPay from PostEx is a payment gateway built for the Pakistani market. It processes large volumes and focuses on reliability. It integrates easily and helps reduce drop-offs.

XPay handles the main issues in these ways:

• On-Site Checkout Without Redirects: Payments stay on the store's website. Customers do not leave the page. Forms load quickly. This reduces drop-offs caused by redirects. For mobile users, it supports one-tap options and saves card details securely for faster future purchases.
• Better Routing to Reduce Failures: The system chooses the best path for each transaction based on card type or method. This lowers decline rates. It also supports COD through the same system.
• Clear and Low Fees: Fees appear upfront with no hidden charges. Discounts apply automatically for certain banks. This removes surprises that cause customers to cancel.
• Strong Security Features: XPay meets PCI-DSS standards and detects fraud in real time using device data, IP checks, and behavior patterns. Security badges and encryption build customer trust.
• Support for All Common Payment Methods: One system handles cards, digital wallets (JazzCash, Easypasia), COD, and subscriptions. Renewals work without errors. Integration with Shopify or WooCommerce takes little time. Custom sites can use the provided SDKs.

XPay matches the needs of the Pakistani market, including variable network speeds and COD preference.

Start Using XPay to Increase Revenue

Stores do not have to lose 20% of revenue at checkout. The right payment system can fix the problem. XPay works well for Pakistani e-commerce conditions.

Visit xpay.postexglobal.com to sign up, test the demo, and integrate it. A free trial is available. Track results after setup.

The market grows 15-20% each year. Recovering abandoned carts adds real revenue. Improve the checkout process, keep more customers, and grow the business.