The State Bank of Pakistan (SBP) has released its annual report, highlighting substantial advancements in the national payment ecosystem during the fiscal year 2023-24. The report underscores the ongoing transformation of Pakistan’s payment landscape towards digital solutions, showcasing remarkable growth in retail payments.
In FY24, the volume of retail transactions surged from 4.7 billion to 6.4 billion, while the value of these transactions increased from Rs. 403 trillion to Rs. 547 trillion, marking a growth of approximately 35 percent in both volume and value. Notably, the share of digital payments by volume rose from 76 percent in FY23 to 84 percent in FY24.
This expansion is largely attributed to the increasing number of users of digital channels, driven by the convenience and variety of products offered through mobile banking apps, internet banking portals, and mobile wallets. During FY24, mobile app banking users increased by 16 percent, internet banking users by 25 percent, Branchless Banking (BB) mobile app wallet users by 2 percent, and e-wallet users by an impressive 85 percent.
The report highlights the pivotal role of digital payments made through mobile banking apps and internet banking portals, which collectively saw a 62 percent increase in transactions to 1,346 million. The value of these transactions rose by 74 percent to Rs. 70 trillion. Mobile app-based wallets also experienced substantial growth, with customers making 2,697 million payments through their BB mobile app wallets and 85 million through EMIs’ e-wallets.
The expansion of the point-of-sale (POS) machine network has further contributed to this growth, with the number of POS machines increasing by 8.9 percent to 125,593, facilitating card-based transactions at an increasing number of retail outlets and stores. E-commerce payments have also seen a significant shift, with 87 percent of digital payments for e-commerce now initiated through bank accounts or digital wallets. A total of 309 million e-commerce payments were made during FY24, with a transaction value reaching Rs. 406 billion.
The SBP’s report highlights the resilience and robustness of Pakistan’s payment infrastructure, positioning the country as a leader in digital financial services within the region. It underscores the remarkable growth in digital payments, driven by the increasing availability and adoption of digital payment channels, reflecting a growing reliance on these systems by customers across the country.
