Pakistan’s QR-enabled merchant network expanded sharply during fiscal year 2026, with the number of merchants rising to 3.8 million from 1.1 million in FY25.

State Bank of Pakistan (SBP) data shows that QR-enabled merchants handled 297 million transactions worth Rs1.6 trillion during FY26.

The volume translates into roughly 0.8 million QR transactions every day, while the average daily value of these payments was around Rs5.5 billion.

QR-based payments also recorded significant growth compared with the previous fiscal year. Merchants processed more than 86 million QR transactions worth Rs234 billion in FY25, according to the SBP’s Payment Systems Review.

The expansion followed the government’s subsidy program launched under the Prime Minister’s Cashless Pakistan Initiative. The government allocated Rs3.5 billion for the program to encourage digital payments and increase QR acceptance among merchants.

Under the scheme, eligible transactions qualified for a subsidy equal to 0.5 percent of the transaction value, subject to a maximum of Rs100 per transaction.

The subsidy was shared equally between the merchant’s financial institution and the customer’s financial institution, covering the acquiring and issuing sides of the payment.

Financial institutions were also permitted to charge merchants up to 0.25 percent of the transaction value for onboarding and servicing.

The growing use of QR payments is expected to support the shift toward cashless transactions at retail outlets. Analysts have also called for the subsidy program to continue to expand the QR-enabled merchant base.

They said wider adoption of digital payments could reduce reliance on cash, lower cash management costs and support financial inclusion.