Digital payment channels accounted for 92 percent of all retail transactions by volume in Pakistan during the second quarter of FY26, reflecting a continued shift toward a cashless economy.

According to the State Bank of Pakistan’s latest Quarterly Payment Systems Review, digital transactions maintained strong growth between October and December 2025, both in terms of volume and value.

Total retail payments rose by 8 percent during the quarter, reaching 3.4 billion transactions with a cumulative value of Rs. 167 trillion. The share of digital channels increased from 88 percent in the same period last year to 92 percent, indicating wider adoption of electronic payment methods.

In value terms, digital payments also expanded their footprint, contributing approximately 38 percent of total retail transaction value.

The growth in transaction volume was largely driven by fund transfers, which totaled 1.58 billion transactions. Merchant payments followed at 500.9 million, while bill payments and mobile top-ups reached 359.1 million. Cash withdrawals through ATMs, branches, and agents accounted for 319.5 million transactions, with cash deposits standing at 71.8 million.

A similar trend was observed in value terms, where fund transfers dominated with Rs. 121 trillion. Cash withdrawals and deposits combined contributed around Rs. 30 trillion to the overall transaction value.

The data highlights Pakistan’s accelerating transition toward digital financial services, supported by increased usage of mobile banking, branchless banking, and online payment platforms.