How to measure payment conversion rates: angles you might be overlooking

Ever wondered how other companies measure their payment conversion rates? Not just the surface-level numbers, but the actual logic behind what they track — and how they act on it?

We decided to share the approach we and our clients use to track, dissect, and optimise payment conversion. Dive in!

6 methods to measure payment conversion rates

As one-size-fits-all measurement can be misleading, savvy businesses slice and analyse payment conversion rates in multiple ways to gain richer insights.

Here are the six ways to track and analyse payment conversion rates across your projects. No guesswork, just real-world practices that help turn data into decisions.

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By project

Large payment companies or enterprises might have multiple projects, brands, or product lines under one roof. Tracking conversion for each project allows you to compare performance.

For example, Project A has a 92% payment success rate, whereas Project B's success rate is 75%. You can investigate what Project A is doing better (it may have a different checkout design that improves success rates or a different payment provider) and apply this approach across other projects.

By customer or customer segment

If you notice customers who repeatedly enter a payment page but fail to complete the payment, it's time to investigate potential UX issues or payment method mismatches.

Additionally, you can examine conversion by the payment methods a customer used. For instance, customers in a particular region fail with credit cards but succeed with e-wallets. Knowing that, you might proactively highlight e-wallet options for them next time.

On a broader scale, segmenting customers by demographics or behaviour can help you tweak their checkout experience. For example, if users drop off at the account creation stage, simplifying that path with guest checkouts could improve performance.

There's no single definition of conversion that fits all, and we often say there are fifty shades of it. What matters is choosing the view that answers your business question.

Denys Kyrychenko

Corefy Co-founder and CEO

By provider, acquirer, or gateway

If you use multiple payment gateways or providers, this method of measuring payment conversion is essential. Certain providers or acquirers may perform better for different card types, currencies, or regions.

For example, Provider X might have a 95% authorisation rate on Visa in Europe but only 80% on AmEx, whereas Provider Y is the opposite. By analysing which transactions each provider handles best, you can route payments strategically to the most efficient provider, thereby lifting overall conversion.

With vs. without CVV/3DS

Adding security checks, such as CVV re-entry or 3D Secure authentication, can lower fraud, but sometimes at the cost of conversion. To monitor this, compare conversions when CVV/3DS is enabled and disabled. For instance, if disabling 3DS on low-value transactions boosts conversion significantly without a noticeable rise in fraud, that might be a worthwhile trade-off.

The goal is to find the right balance between security and conversion. If you operate in a high-risk industry, such as gambling or cryptocurrency, it's worth experimenting with different scenarios to determine when to apply 3D Secure or other security checks. You can also fine-tune your routing logic to dynamically skip 3DS for trusted users, reducing friction and helping maintain high conversion rates without compromising safety.

In real time

Rather than only tracking monthly reports, monitoring payment conversion in real time is incredibly useful for catching problems early. For example, if you notice a real-time drop in approvals, it may alert you that a particular card network is experiencing issues or downtimes.

Over selected periods

It can be last week, Black Friday weekend, Q1 vs Q2, etc. You can compare conversion rates before and after a new payment provider integration, or seasonally, as holiday traffic can behave differently. It also helps in forecasting: if you improved conversion by 5% after a checkout redesign, you can estimate the revenue impact over the year.

By using these slices, you get a 360° view of your payment performance. A PSP or ISO can use such analytics to advise their merchants, while merchants can use it internally for more informed decision-making.

Key takeaways

There's no one-size-fits-all way to measure payment conversion. Depending on your goals, industry, and payment setup, different perspectives will give you different insights.

• Breaking down conversion rates by project, customer segment, or provider can help you pinpoint what’s working and where optimisation is needed.
• Segmenting by provider, acquirer, or gateway is crucial for smart routing, as some providers consistently perform better for specific card types, currencies, or regions.
• Comparing performance with and without security checks, such as CVV or 3DS, can help you find the optimal balance between fraud prevention and user experience.
• Real-time monitoring allows for faster reaction. A sudden drop in approvals can be caught and addressed before it becomes a revenue leak.
• Looking at trends over selected periods helps evaluate the impact of changes, seasonal patterns, or specific campaigns.

Ultimately, the best approach is the one that answers your business questions and supports decision-making. Conversion is not just a number; it's a lens into how efficiently your payment process performs.