ISLAMABAD: Digital payment channels in Pakistan processed a remarkable 88% of all retail transactions by volume, with mobile banking apps playing a pivotal role. According to the State Bank of Pakistan (SBP), these platforms, including mobile banking apps, branchless banking (BB) wallets, and e-money wallets, collectively handled 1.45 billion transactions, valued at Rs. 24 trillion. This represents a 12% growth in transaction volume and a 28% increase in transaction value. The trend continues to strengthen, with further growth expected in Q2-FY25.
Growth in Digital Payment Channels
The number of users embracing digital banking services also grew steadily. Mobile banking app users increased by 7%, reaching 21 million. E-money and BB wallet users grew by 13% and 7%, respectively, reaching 4.7 million and 64.3 million. Additionally, internet banking saw a 7% rise in users, reaching 13.3 million. Merchant payments through digital platforms also grew significantly this quarter, with e-commerce transactions rising by 30% in volume to 152 million, totaling Rs. 193 billion (a 32% increase).
E-Commerce and In-Store Digital Payments
Among e-commerce transactions, 8% (12.8 million) were made through cards, while 92% (139.5 million) were processed via digital wallets/accounts. In terms of transaction value, the share was 33% for cards and 67% for digital wallets. The number of POS-enabled merchants reached 115,177, with 151,646 POS terminals facilitating 89 million in-store purchases worth Rs. 510 billion (a 19% increase). Retail and kiryana store merchants accepting QR codes or BB wallet payments processed 22.1 million transactions, valued at Rs. 58 billion, reflecting 4% and 9% growth, respectively.
SBP’s Role in Accelerating Digital Payments
SBP-operated payment systems, such as Raast (Instant Payment System) and RTGS (Real-Time Gross Settlement System), played a crucial role in boosting digital payments across Pakistan. Raast processed 296 million transactions, valued at Rs. 6.4 trillion, during Q2-FY25, bringing its total transactions since launch to 1.144 billion, worth Rs. 26 trillion. Meanwhile, the RTGS system settled large-value transactions totaling Rs. 330 trillion, marking a 19% increase in value.
Overall Retail Transaction Growth
Retail transactions increased by 11% in volume, reaching 2.14 billion, while their total value rose by 12%, amounting to Rs. 154 trillion. This growth was largely attributed to mobile banking, internet banking, and over-the-counter (OTC) banking transactions, according to the SBP’s Quarterly Payment Systems Review for Q2-FY25.
A Step Towards Digital Economy
Pakistan’s digital economy transformation is being driven by SBP’s strategic initiatives, along with the collaborative efforts of banks, fintech companies, and payment service providers. As digital payments continue to grow, SBP is committed to furthering financial inclusion and improving payment efficiency for individuals and businesses alike.