Digital payment channels in Pakistan processed 89 percent of all retail transactions by volume, with mobile app-based banking playing a crucial role in this growth. During Q3-FY25, retail payment volumes rose by 12 percent, reaching 2,408 million transactions, while the total transaction value soared to Rs. 164 trillion.
According to the State Bank of Pakistan’s (SBP) recently released Quarterly Payment Systems Review for the third quarter of FY25, digital payments continued their upward trajectory, showing significant increases in both transaction volume and value.
Mobile app-based platforms, including mobile banking apps, branchless banking (BB) wallets, and e-money wallets, processed a total of 1,686 million transactions worth Rs. 27 trillion. This represents a 16 percent increase in volume and a 22 percent rise in value compared to the previous quarter.
The number of digital banking users also saw steady growth, with mobile banking app users increasing to 22.6 million (up 7 percent). E-money and BB wallet users reached 5.3 million (up 12 percent) and 68.5 million (up 6 percent), respectively. Additionally, internet banking users rose to 14.1 million, marking a 7 percent increase.
E-commerce payments experienced robust growth, with volumes increasing by 40 percent to 213 million and values rising by 34 percent to PKR 258 billion. Digital wallets dominated this sector, accounting for 94 percent (199.1 million) of e-commerce payments by value, while card-based online payments contributed only 6 percent (13.5 million).
In-store purchases also saw significant activity, with 140,861 merchants processing 99 million transactions (up 12 percent) worth Rs. 550 billion (up 8 percent) through a network of 179,383 point-of-sale terminals. Merchants accepting QR codes processed 21.7 million transactions valued at Rs. 61 billion.
SBP-operated payment systems, including Raast (Instant Payment System) and RTGS (Real-Time Gross Settlement System), played a pivotal role in driving digital payments. During the quarter, Raast processed 371 million transactions worth Rs. 8.5 trillion, bringing cumulative volumes since its launch to 1.5 billion transactions valued at over Rs. 34 trillion. The RTGS system handled 1.5 million large-value transactions amounting to Rs. 347 trillion.
The ongoing shift towards a digital economy is being strongly supported by SBP’s strategic initiatives and the collaborative efforts of banks, fintech companies, and payment service providers.
