ISLAMABAD: Digital payment channels in Pakistan have processed an impressive 88% of all retail transactions by volume, with mobile banking apps playing a key role. According to the State Bank of Pakistan (SBP), digital platforms such as mobile banking apps, branchless banking (BB) wallets, and e-money wallets handled 1.45 billion transactions, valued at Rs. 24 trillion. This marks a 12% increase in transaction volume and a 28% rise in transaction value. The growth trend is expected to continue, with further increases anticipated in Q2-FY25.
Growth in Digital Payment Channels
The number of users adopting digital banking services has also shown steady growth. Mobile banking app users grew by 7%, reaching 21 million, while e-money and BB wallet users increased by 13% and 7%, respectively, bringing their total to 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 experienced significant growth this quarter, with e-commerce transactions increasing by 30% in volume to 152 million, totaling Rs. 193 billion, marking a 32% rise.
E-Commerce and In-Store Digital Payments
Among e-commerce transactions, 8% (12.8 million) were made using cards, while 92% (139.5 million) were processed via digital wallets/accounts. In terms of transaction value, 33% came from cards, and 67% was from 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, reflecting 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, showing 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), have played a significant role in driving digital payments in 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
Overall, retail transactions increased by 11% in volume, reaching 2.14 billion, and their total value rose by 12%, amounting to Rs. 154 trillion. This growth is attributed largely to mobile banking, internet banking, and over-the-counter (OTC) banking transactions, as reported in the SBP’s Quarterly Payment Systems Review for Q2-FY25.
A Step Towards Digital Economy
Pakistan’s digital economy transformation is driven by SBP’s strategic initiatives, along with the collective efforts of banks, fintech companies, and payment service providers. As digital payments continue to grow, SBP remains committed to enhancing financial inclusion and improving payment efficiency for individuals and businesses across the country.
