Digital Payments Surge in Pakistan

Digital payments have become increasingly popular in Pakistan, accounting for a substantial portion of retail bank transactions. In 2024, digital payments captured a commanding 84% of total retail bank transactions by consumers, reflecting a significant shift away from traditional payment methods.

The State Bank of Pakistan (SBP) annual review of the payment system highlights the growing trend towards digital payments in the country. The convenience, efficiency, and instant nature of e-banking solutions have attracted a large number of customers, leading to a steady increase in digital transactions over the years.

The SBP review revealed that digital transactions witnessed a notable rise in 2024, reaching 84% of total retail bank transactions. This marked a significant increase from the previous year, when digital payments accounted for 76% of transactions.

The growing preference for digital payment among Pakistani consumers is evident in the increasing number of transactions conducted through mobile and internet banking channels. These transactions experienced an annual growth of 57% by volume and 81% by value in the fiscal year 2022-23.

Branchless Banking (BBs) transactions also exhibited a similar growth pattern, with a 28% increase in the number of transactions and a 45% increase in value during the same period.

The SBP’s annual review underscores the positive impact of digital payment on Pakistan’s financial landscape. By promoting financial inclusion and reducing reliance on cash-based transactions, digital payments contribute to a more efficient and transparent economy.