5 Key Questions Heads of Payments Must Ask About Approval Rates
The cost of failed transactions due to low approval rates is $118.5 billion annually, according to Finextra.
Payment systems across the MENA region face mounting pressure to optimize approval rates as transaction failures translate into direct financial losses for fintech firms, banks, and merchants. With cross-border and digital payment volumes growing rapidly, the need for strategic oversight in payment processes has become critical. This includes addressing root causes of declines, improving real-time fraud detection, and aligning with evolving regulatory expectations for transaction transparency.
Significance: For the MENA fintech ecosystem, the focus on approval rates underscores the growing regulatory scrutiny of payment infrastructure. Central banks in the GCC are increasingly prioritizing transaction reliability as part of broader financial stability frameworks. For market participants, the practical question is whether current payment systems are equipped to meet these standards without compromising user experience or incurring excessive operational costs.
What wasn’t disclosed: The dossier contains no corroboration from multiple sources for the $118.5 billion figure. Additionally, the analysis lacks specific data on successful payment strategies or regional breakdowns of approval rate performance. Further independent verification is required before this figure can be treated as a definitive industry benchmark.
