{"id":7109,"date":"2021-12-08T16:03:09","date_gmt":"2021-12-08T10:33:09","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=7109"},"modified":"2025-03-21T16:25:05","modified_gmt":"2025-03-21T10:55:05","slug":"transaction-success-rate-what-it-is-and-why-it-matters","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/transaction-success-rate-what-it-is-and-why-it-matters\/","title":{"rendered":"Transaction Success Rate – what it is and why it matters"},"content":{"rendered":"

In the digital payments world, the metric \u2018transaction success rate\u2019 gets used quite often – and with good reason.\u00a0<\/span><\/p>\n

Transaction success rates reflect how you get paid, and how smooth that experience is for customers – and low transaction rates can really hurt your business.\u00a0<\/span><\/p>\n

In fact, low transaction success rates can cause businesses to lose up to <\/span>30% of their earned revenue<\/b>, and up to <\/span>33% of customers<\/b> facing declined transactions – causing their brand to lose significant value that they had earned.\u00a0<\/span><\/p>\n

What is \u2018Transaction Success Rate\u2019?<\/span><\/h2>\n

Transaction success rate is the percentage of attempted payments that are successfully completed, and reflects how many payments reached your business for every 100 payments that customers make on your website or your app.\u00a0<\/span><\/p>\n

For example, if a hundred payments were attempted and 75 went through, your \u2018transaction success rate\u2019 would be 75%. Since payment attempts include customers re-attempting failed payments, this metric is not directly correlated to your revenue.<\/span><\/p>\n

However, the fact is that <\/span>33% of failed payments are not reattempted<\/b>. Today\u2019s customers want a smooth online payment<\/a> experience, and every additional step or annoyance on the path from adding to cart to checking out just adds to <\/span>cart abandonment <\/b><\/a>– and directly impacts a business\u2019 bottom line.\u00a0<\/span><\/p>\n

However, unlike other reasons for customers abandoning a cart, payment failure is one of those factors that businesses have little or no control over – and it means that all the cost incurred with acquiring a customer and retaining them gets wasted.<\/span><\/p>\n

What affects \u2018Transaction Success Rate\u2019?<\/span><\/h2>\n

As a measure of the number of payments that succeed, this question can be answered by understanding what causes payment failures. Payment failures<\/a> can be caused by anything from an incorrectly entered OTP to a delayed response from the payment provider or the bank\u2019s digital infrastructure that is supporting the transaction.\u00a0<\/span><\/p>\n

We analysed data from <\/span>148 million<\/b> payments made since December 2020 and here are some insights into what causes transaction failures:<\/span><\/b><\/p>\n