PPRO releases retail payments guide in Shenzhen, uncovering hidden costs of checkout friction

PPRO, a London-based leading local payments platform, highlighted a critical yet often overlooked challenge in global commerce in its latest retail report issued in Shenzhen yesterday.

In the report titled "The Hidden Costs of Payment Friction in Cross-Border Retail," the fintech company said that the hidden cost of checkout friction erodes merchants’ conversion rates and revenue growth.

PPRO's report "The Hidden Costs of Payment Friction in Cross-Border Retail" is released in Shenzhen yesterday. ppro.com

The report shows that while global e-commerce continues to expand rapidly, payment performance remains a key bottleneck in conversion.

It says that 72% of merchants say cross-border transaction failure rates are higher than domestic ones. Meanwhile, 94% of cross-border shoppers want to pay in their local currency, and 99% prefer using familiar payment methods.

Global cart abandonment averages around 70%, rising to more than 75% on mobile devices. Online retailers lose an estimated US$18 billion annually due to abandoned carts, with the total value of goods left in carts reaching about US$ 4 trillion each year, according to the report.

The report says a structural shift in retail — from price-led competition to experience-driven growth — has emerged. As much as 40% of consumers' perceived value comes from non-price factors, such as convenient payment and trusted local options.

By 2030, digital wallets are expected to account for 65% of global e-commerce transactions, and alternative payment methods 79%, making localized payment capability an essential infrastructure for global retail expansion.

A major cross-border e-commerce hub, Shenzhen is home to more than 120,000 sellers and 100,000 supporting service firms.

Motie Bring, CEO of PPRO

"As global retail evolves, Chinese brands are entering a new phase of international growth," said Motie Bring, CEO of PPRO. "Building robust, flexible, and localized payment infrastructure will be a critical foundation for capturing the next wave of global opportunities."

PPRO's platform helps payment service providers (PSPs) and merchants grow their businesses by enabling their customers to pay locally. The firm has been steadily growing its presence in China. Over the past year, it has seen a 50% increase in transactions processed for Chinese merchants and a 49% increase in volume processed.