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Throughout the Asia-Pacific (APAC) region, e-commerce merchants face staggering losses amounting to billions of dollars annually, primarily due to issues such as cart abandonment, foreign exchange (FX) fees, and settlement delays.
According to cross-border payment leader Payoneer, these inefficiencies result in an alarming US$72 billion in unrealized annual revenue across pivotal APAC markets.
Cart abandonment, a phenomenon where potential buyers abandon their carts due to failed authorizations, lack of preferred payment options, rejection by issuers, or unexpected pricing adjustments, accounts for a significant US$28.53 billion yearly in India, Singapore, Vietnam, Thailand, Pakistan, and South Korea. This figure represents nearly 40% of the total revenue loss, making it the primary source of financial leakage.
Foreign exchange and payment costs, along with conversion inefficiencies, emerge as a cross-border transaction traverses through various payment service providers (PSPs), card networks, FX intermediaries, and correspondent banks.
Each stakeholder siphons off a portion of the value, thereby compressing profit margins and impeding liquidity.
Payoneer estimates that this cumulative effect results in a staggering US$25.96 billion in yearly value exposure, constituting 36% of total leakages.
Furthermore, delays in settlements immobilize cash for extended periods as funds traverse through PSPs, acquiring banks, correspondent entities, and payout schedules.
This inefficiency leads to losses estimated at US$17.7 billion annually, which accounts for 24.6% of the overall leakage. Assessing financial leakage in APAC; Source: The USD 72 Billion Hidden Cost, Payoneer, Feb 2026
Strategies for Mitigating Revenue Leakage
Despite Asia contributing 62.6% of global e-commerce growth, as highlighted by marketing research firm NielsenIQ, merchants can further escalate cross-border trade by streamlining fragmented processes into cohesive, end-to-end systems. Payoneer outlines four essential steps to achieve this objective.
Initially, merchants should conduct a thorough assessment to identify areas where value leakage occurs throughout the payment settlement lifecycle, focusing on failed or downgraded transactions.
Subsequently, it’s imperative to modernize cash flows by consolidating intermediary relationships and automating reconciliation processes to establish end-to-end oversight.
Thirdly, merchants must enhance payment acceptance by incorporating local payment options in each market, while also displaying prices in customers’ native currencies, thus transforming the checkout experience into a compelling conversion tool.
Lastly, a focus on expediting liquidity is vital; enabling cross-border fund transfers in mere minutes instead of days is paramount.
Additionally, merchants should strategically manage currency holdings and ensure real-time visibility into liquidity and settlement processes.
By implementing these strategies, Payoneer asserts that merchants can significantly curtail cart abandonment rates, minimize FX-related losses, and eradicate setbacks associated with settlement delays, thus unlocking substantial revenue opportunities throughout the APAC region.
Market Projections
The APAC region is home to some of the globe’s largest e-commerce landscapes, including formidable players like China and South Korea, alongside the rapidly expanding economies in Southeast Asia.
The e-Conomy SEA 2025 report—published by Bain, Google, and Temasek—indicates that e-commerce gross merchandise value (GMV) reached US$185 billion across Southeast Asia’s ten principal economies in 2025, marking a robust 19% increase from the previous year.
Projections suggest a surge in GMV to US$359 billion by 2030. E-commerce GMV and revenue in ASEAN; Source: e-Conomy SEA 2025 Report, Google, Temasek, Bain, Nov 2025
Video commerce has emerged as a critical catalyst in the region’s e-commerce sector, now accounting for approximately 25% of total GMV, a significant rise from merely 5% in 2022.
By integrating video content into shopping experiences, video commerce fosters engaging online interactions, thereby enhancing conversion rates.
A comprehensive global analysis by Nielsen indicates that YouTube achieves 2.3 times higher long-term returns on ad spend compared to paid social platforms.
The inclination towards video commerce among merchants is also escalating; by 2025, the number of sellers and stores employing video exceeded 3 million, reflecting an impressive 80% year-over-year growth. Video commerce dynamics in Southeast Asia; Source: e-Conomy SEA 2025 Report, Google, Temasek, Bain, Nov 2025
Source link: Fintechnews.sg.
