Digital Transactions Covered 88% of Retail Payments in Pakistan

Digital payment channels processed 88 percent of all retail transactions by volume, with mobile app-based banking playing a crucial role. These platforms, which include mobile banking apps, branchless banking (BB) wallets, and e-money wallets, collectively processed 1,450 million transactions worth Rs. 24 trillion. This marks a 12 percent increase in volume and a 28 percent rise in value, according to the State Bank of Pakistan (SBP). The digital payment landscape in Pakistan continues to strengthen, with transactions increasing further in Q2-FY25. The number of users leveraging digital banking services also saw steady growth. Mobile banking app users rose to 21 million (7 percent), while e-money and BB wallet users increased to 4.7 million (13 percent) and 64.3 million (7 percent), respectively. Internet banking users reached 13.3 million (7 percent). Merchant payments through digital platforms also expanded this quarter. E-commerce transactions grew by 30 percent in volume to 152 million, amounting to Rs. 193 billion (32 percent). By volume, 8 percent (12.8 million) of e-commerce transactions were made through cards, while 92 percent (139.5 million) were processed via digital wallets/accounts. In terms of value, this share stood at 33 percent and 67 percent, respectively. The 115,177 POS-enabled merchants with 151,646 POS terminals facilitated 89 million (7 percent) in-store purchases, totaling Rs. 510 billion (19 percent). Retail and kiryana store merchants accepting QR or BB wallet payments processed 22.1 million transactions worth Rs. 58 billion, reflecting 4 percent and 9 percent growth, respectively. SBP-operated payment systems, Raast (Instant Payment System) and RTGS (Real-Time Gross Settlement System), played a key role in accelerating digital payments across the country. Raast processed 296 million transactions worth Rs. 6.4 trillion during Q2-FY25, bringing cumulative transactions since its launch to 1,144 million, valued at Rs. 26 trillion. The RTGS system settled large-value transactions worth Rs. 330 trillion, marking a 19 percent increase in value. Retail transactions saw an 11 percent increase in volume, reaching 2,143 million, while their total value rose by 12 percent to Rs. 154 trillion. This growth was primarily driven by mobile banking app payments, internet banking transactions, and over-the-counter (OTC) banking transactions, according to SBP’s Quarterly Payment Systems Review for Q2-FY25. Pakistan’s transition towards a digital economy is being driven by SBP’s strategic initiatives and the collaborative efforts of banks, fintech companies, and payment service providers. As digital payments continue to expand, SBP remains committed to fostering financial inclusion and enhancing payment efficiency for individuals and businesses alike.