FY24 Breaks Records with Rs17 Trillion in Digital Transactions in Pakistan in Q1

In the first quarter of FY’24 in Pakistan, people made payments in two main ways: over-the-counter (OTC) and digital transactions. When you hear “over-the-counter,” it means going to a physical place like a bank branch to make transactions. “Digital transactions” means using online methods like internet banking or mobile apps.

The State Bank of Pakistan recently shared a report about these payments. It found that 20 percent of transactions, which are actions like buying things or paying bills, happened over the counter. However, when it comes to the total amount of money spent, only 13 percent of it was through digital methods. A larger 87 percent was done over the counter. This suggests that people tend to use the over-the-counter option for bigger purchases.

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Purchasing goods, paying bills, and transferring money are examples of retail payments. These are smaller in scale and made by people or businesses on a daily basis. The report shows that in Pakistan, people have many ways to make payments. It includes internet banking, mobile phone banking, ATMs, and digital wallets.

The report also mentioned that digital transactions increased by 7.7 percent. It reaches Rs 17.031 trillion from July to September in the fiscal year. Digital transactions mostly involved transferring funds (41 percent), taking out cash (37 percent), and making point-of-sale purchases (11 percent).

When it comes to over-the-counter transactions, about 32 percent were cash withdrawals, 33 percent were cash or cheque deposits, and 22 percent were fund transfers through bank branches using cheques. The report noted that 88 percent of fund transfers were initiated using digital channels like ATMs and online banking.

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In terms of value, digital channels contributed to almost 50 percent of total bill payments, even though 69 percent of the transactions happened on digital platforms. This shows that even though more transactions were done digitally, over-the-counter transactions still had a significant impact in terms of value.

Overall, the report highlighted that Pakistan is experiencing growth in digital payments, showing the country’s move towards innovative technologies and a more advanced financial landscape. The shift towards digital payments is making transactions quicker and more transparent, and the country is embracing this change with the presence of various banks and other institutions providing payment services.