#Japan #Tokyo #E-Commerce #YTGATE #Payment Approval

Enhancing Payment Approval Rates in E-Commerce: Insights from a Recent Survey

In May 2025, a comprehensive survey conducted by YTGATE—a leading payment consulting firm—revealed significant insights into the awareness and willingness of e-commerce operators in Japan to improve their payment approval rates. The study, which targeted 309 online business operators aged between 20 and 70 across the nation, provided valuable data regarding the current landscape of e-commerce payment processes.

Survey Overview

The survey took place from May 26 to 27, 2025, and employed internet-based methodologies to gather responses. Interestingly, a profound 76% of respondents expressed interest in enhancing their payment approval rates, with over 70% identifying this as a critical issue in their operations.

Key Findings

1. Lack of Awareness

One striking finding was that 62.4% of e-commerce operators admitted to having insufficient knowledge regarding the term credit card payment approval rate (also known as authorization rate). When examined by business size, about 30% of large companies with annual revenues exceeding 10 billion yen stated they were well-informed about this topic, in contrast to their smaller counterparts, where a higher proportion remained unaware.

2. Urgent Need for Improvement

Overall, 76.5% of participants acknowledged a pressing need to enhance their payment approval rates, with a notable 25% indicating that the necessity was paramount. Among larger firms, approximately 75% recognized the importance of improvement, highlighting a substantial awareness of this challenge among major enterprises.

3. Recognizing Importance

When asked about the significance of understanding and improving payment approval rates for their businesses, about 70.5% of e-commerce operators regarded this as a crucial concern that needs addressing actively.

Challenges Faced

Participants voiced their perspectives on challenges related to their company's e-commerce site payment processes, particularly emphasizing the growing incidents of fraudulent activities, exceeding credit card limits, and difficulties in entering card information. Many expressed concern that these challenges could lead to rejected transactions and potential revenue loss.

One survey respondent, a male executive, pointed out that as various factors lead to errors and authentication delays, customer dissatisfaction is on the rise. Another male technical staff member noted, "We must ensure we continuously recognize and improve our processes regarding payment authorization. It’s vital that the understanding of these efforts is disseminated within the company."

As cashless transactions gain momentum, businesses are urged to adapt and offer appropriate solutions to their partners. This sentiment was echoed by those seated in managerial roles, who noted ongoing discussions regarding payment approval improvements.

Regulatory Changes

Additionally, in light of the mandatory implementation of EMV 3D Secure starting March 2025, the complexities of payment processing have escalated. As an increasing number of authentication steps lead to higher chances of transaction errors, the shared liability for fraudulent losses is shifting from merchants to credit card companies that have adopted 3D Secure. Consequently, this has prompted card issuers to become increasingly risk-averse, often resulting in outright transaction denials despite available credit.

The Bigger Picture

Payment approval rate visibility transcends mere monitoring; it's about understanding the flow of sales, which is crucial for business vitality. The recent study underscores the growing recognition of payment approval rates as a critical business metric in e-commerce, with about 40% of large businesses expressing a strong desire for improvement.

In response to these findings, YTGATE plans to enhance its analytical capabilities and consulting services for medium to large companies, while also developing educational programs aimed at smaller businesses to foster a deeper understanding of the issues at hand. This holistic approach aims to improve sales and reduce risks across diverse e-commerce operators.

Conclusion

For quotes from this survey, kindly attribute it to YTGATE's "E-Commerce Operator Reality Survey on Payment Approval Rate Awareness 2025." The increasing focus on payment approval rates presents both a challenge and an opportunity for e-commerce operators to refine their processes and ultimately enhance their revenue streams.

For inquiries regarding services or payment approval rates, please visit YTGATE Contact or reach out to YTGATE’s public relations officer, Uemura, at Inquiry＠ytgate.jp.

About YTGATE

Founded in October 2023, YTGATE is headquartered in Chuo-ku, Tokyo. The company is dedicated to optimizing payment processes and supporting businesses in improving their payment approval rates. By offering comprehensive solutions, including data visibility, risk management, and consulting services, YTGATE aims to ensure smooth transactions for businesses globally.

For more detailed information, visit YTGATE Official. Follow YTGATE on Twitter for updates.