Are you tracking the payment KPIs that matter most?

A UK fashion retailer discovered their mobile conversions were 20% lower than desktop. They assumed it was the checkout flow or page load times – but it wasn’t.

When they dug into their payment analytics, they found one particular card type was failing more frequently on mobile devices. By switching their payment routing to address this specific issue, they improved mobile conversions by 15%.

That's the power of proper payment analytics. It's not just about tracking how much money comes in; it's about uncovering the friction points that are quietly costing you revenue.

If you're only monitoring payment volume and gross transaction value, you're missing the bigger picture. The metrics that actually drive growth sit beneath the surface: approval rates by region, decline patterns by payment method, and conversion rates segmented by device and card type.

These are the insights that reveal where revenue is leaking, and, more importantly, what you can do about it.

Consider payment method performance. A merchant expanding into Germany might assume their existing setup will work fine. But if they're not offering local European payment methods like Sofort or Giropay, they're likely watching German customers abandon at checkout without understanding why.

Real-time monitoring is another area where most merchants fall short. Noticing a drop in conversions often means days of revenue are already lost.

A subscription service we work with tracks its payment analytics in real time via its merchant dashboard, with alerts set for sudden drops in approval rates or spikes in failed payments. When a social media campaign in Austria drove higher-than-expected declines, they quickly identified the issue: they weren't offering EPS, the local payment method Austrian customers prefer. By adding EPS for that specific cohort, they increased approval rates by 8%.

That's the difference between reactive reporting and proactive optimisation.

So which KPIs should you actually track? At minimum:

• Conversion rate – the percentage of initiated payments that complete successfully
• Approval rate – how often transactions are approved by banks or gateways
• Decline rate – frequency and patterns of failed transactions
• Payment method performance – volume, success rate, and reliability by method
• Chargebacks and refunds – indicators of fraud or customer dissatisfaction

But the real value comes from segmentation. Don't just track overall approval rates; segment by region, card type, payment method, device, and customer cohort. That's where you'll spot the patterns that reveal opportunities for improvement.

Tracking the right metrics isn’t enough. Poor presentation makes it hard to spot issues quickly. This is where payment dashboards come into play.

Use charts for approval rates and conversion trends, and heatmaps to reveal device or region-specific problems at a glance. Compare payment methods side by side to identify underperformers.

Keep dashboards simple and focus on actionable KPIs. Use colour coding to highlight metrics that need attention. The goal isn't to track everything, it's to surface the insights that drive decisions.

Understanding your payment performance isn't just a ‘nice-to-have’ anymore. With margins tightening and competition intensifying, every percentage point of conversion matters.

The merchants who treat payment analytics as a strategic priority, not just back-office reporting, are the ones who'll identify friction points before they become revenue problems.