Pakistan’s Digital Transactions Rise as SBP Releases First Quarterly Payment Systems Review of FY26

Pakistan’s digital payments ecosystem continued its strong upward trajectory in the first quarter of fiscal year 2025–26, as retail transactions increasingly shifted toward mobile apps, instant payments, and other digital channels, according to the State Bank of Pakistan’s (SBP) first Quarterly Payment Systems Review of FY26.

The central bank reported that retail payment volumes reached 2.8 billion transactions, reflecting a 10 percent quarterly increase. In contrast, the value of retail payments climbed to PKR 166 trillion, up 6 percent from the previous quarter. The expansion was largely driven by the growing adoption of mobile app–based banking and digital payment services.

Digital Channels Dominate Retail Payments

Digital payment channels accounted for 2.5 billion transactions, representing 90 percent of all retail payments, compared to 87 percent in the same quarter last year. In value terms, transactions conducted through digital platforms reached PKR 55 trillion, highlighting the accelerating shift away from cash-based transactions across the economy.

Among digital channels, mobile app–based payments emerged as the dominant mode, recording 2.0 billion transactions—equivalent to 81 percent of all digital payments—with a total value of PKR 33.7 trillion. These apps, offered by banks, branchless banking (BB) providers, and electronic money institutions (EMIs), are increasingly used for person-to-person transfers, bill payments, and merchant payments across both online and physical retail environments.

Internet banking also continued to expand steadily, supported by rising digital literacy and broader access to online financial services.

Raast Maintains Strong Growth Momentum

SBP’s Raast Instant Payment System sustained robust growth during the quarter. Person-to-Person (P2P) transactions increased to 535 million, marking a 31 percent rise, with a total value of PKR 11.3 trillion. Meanwhile, Raast Person-to-Merchant (P2M) transactions doubled to 4.3 million, amounting to PKR 17.0 billion.

Overall, Raast processed 544 million transactions worth PKR 12.8 trillion, reinforcing its role as a key pillar of Pakistan’s real-time digital payments infrastructure.

Cards, ATMs, and Physical Touchpoints Remain Relevant

Despite the rapid digital shift, card-based payments and physical banking touchpoints continue to play an important role. The number of payment cards in circulation reached 61.3 million, with debit cards comprising 90 percent and credit cards 4 percent of the total.

A nationwide network of 20,527 ATMs facilitated 267 million transactions valued at PKR 4.5 trillion during the quarter. On average, each ATM handled 142 transactions per day, with an average ticket size of PKR 16,800.

Physical service channels also remained active. 19,852 bank branches processed 137 million transactions worth PKR 110 trillion, while 756,480 branchless banking agents facilitated 129 million transactions amounting to PKR 0.9 trillion, primarily through over-the-counter services such as cash deposits, withdrawals, fund transfers, and bill payments.

The SBP noted that these developments collectively point toward a more inclusive, efficient, and digitally enabled payment ecosystem in Pakistan. Continued growth in mobile banking, instant payments, and digital acceptance infrastructure reflects increasing consumer trust, improved connectivity, and ongoing investments in financial technology.

For Pakistan’s IT and telecom sectors, the rising volume of digital transactions underscores the growing importance of mobile broadband, secure payment platforms, and interoperable financial infrastructure as key enablers of economic digitization.

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