State Bank Quarterly Review: Digital Payments Adoption Surges in Pakistan

The State Bank has issued its second quarterly review for the fiscal year 2024. It offers insights into the changing dynamics of the payment system and digital payments sector in Pakistan. The review highlights a noteworthy transition, emphasizing the growing preference among Pakistanis for mobile and internet banking methods during the second quarter of FY24. According to the data, there has been a substantial increase, with 16 million users now favoring mobile banking and 11 million embracing Internet banking for their transactions.

Furthermore, the report highlights the increase in electronic money institutions, indicating a 15 percent rise in registered e-wallets, totaling 2.7 million. Branchless banking service providers have also been instrumental, with over 67 million m-wallets registered, further solidifying the country’s swift embrace of digital financial solutions.

State Bank Report: Pakistan’s Digital Transactions Grow 57% Annually

In this period, transactions through conventional banks, microfinance banks, and electronic money institutions (EMIs) have seen a combined increase of 15 percent. Notably, digital channels now handle more than 90 percent of retail fund transfers and 73 percent of bill payments, indicating a significant shift towards modern financial methods. The review also highlights an impressive 107 million free transfer transactions, amounting to over 2 trillion rupees, underscoring the considerable volume of digital financial transactions.

5 Digital Banking Licenses Issued in Pakistan

Significantly, the Real Time Gross Settlement System (RTGS) facilitated 1.5 million high-value payments, totaling Rs 273 trillion. This robust payments infrastructure engages 33 banks, 11 microfinance banks, 5 payment system operators, and service providers, along with 5 Electronic Money Institutions, enhancing the efficiency and uplifting of digital payment operations and landscape. The advent of ‘Raast’ further enriches this evolving ecosystem, augmenting the overall efficiency and accessibility of digital payments in Pakistan.