Gateway Conversion Rate
Definition
Gateway Conversion Rate measures how often customers successfully complete a transaction after reaching the payment gateway.
It reflects the final step of the checkout process where the payment is submitted and approved.
Formula:
(Successful Payments ÷ Gateway Visits) × 100
Good or Bad?
Good?
- A high rate means your payment system is user-friendly and reliable
- Indicates strong trust in your payment processor and checkout design
- Reduces lost sales due to payment friction
Bad?
- A low rate signals technical issues or customer hesitation
- May point to gateway errors, poor mobile experience, or lack of payment options
- Directly hurts revenue even if all other steps in the funnel are strong
Why does it matter?
No matter how good your product or checkout is, a failed payment means no sale.
This metric tells you if users are completing the purchase or dropping off at the very end.
It’s also a quick way to detect if your payment system needs optimization or debugging.
Common Mistakes
- Only tracking completed orders without checking failed or abandoned payments
- Ignoring regional gateway issues (e.g. card declines in specific countries)
- Using a single payment option that doesn’t suit all customers
- Not testing the payment experience on mobile
How to Improve It?
- Offer multiple gateways (e.g. PayPal, credit cards, Apple Pay)
- Make sure your gateway is mobile-optimized
- Use error tracking to identify failed payments
- Clearly communicate accepted payment methods on the product page
Recommended Plugin
Payment Methods by Product & Country by WPFactory
Let customers choose the best gateway based on their product and location. Avoid failed checkouts due to unsupported or unavailable payment methods.
Real-World Example
A fashion store noticed that 1 in 5 customers dropped off at the payment step.
After adding Apple Pay and Klarna, the gateway conversion rate jumped from 79% to 92% in less than a month.
Related Terms
- Checkout Conversion Rate
- Payment Gateway
- Abandoned Cart
- Failed Transactions
FAQs
What is a healthy Gateway Conversion Rate?
Anything above 90% is considered good. Below 80% usually means something is going wrong.
How is this different from checkout conversion rate?
Checkout conversion tracks users who start checkout and complete it. Gateway conversion focuses only on the final payment step.
Can the payment gateway cause failed conversions?
Yes. Network errors, declined cards, or unsupported methods can all lead to lost sales even after the customer is ready to buy.
