Islamabad, Dec 21: The State Bank of Pakistan (SBP) has issued its Quarterly Payment Systems Review for Q1 FY25, highlighting key advancements in the country’s transition toward a cashless and digitally inclusive economy.
The report, covering July to September 2024, points to robust growth in digital payment adoption, infrastructure enhancements, and a gradual move away from cash and paper-based transactions.
During Q1 FY25, retail payments in Pakistan increased by 8% in volume, totaling 1,951 million transactions worth Rs. 136 trillion.
Payments through digital channels saw a 9% quarterly rise in both volume and value, reaching 1,699 million transactions worth Rs. 36 trillion.
Digital channels now handle 87% of retail payment volumes, reflecting growing confidence in these methods.
Mobile banking apps offered by banks, microfinance banks (MFBs), branchless banking (BB) services, and electronic money institutions (EMIs) were instrumental, processing 1,301 million transactions worth Rs. 19 trillion, a rise of 11% in volume and 14% in value. The number of app users increased by 4%, from 93 million to 96.5 million.
E-commerce also played a vital role in digital payment growth, with online transactions increasing by 29%. Out of 118 million online payments, 91% were completed through digital wallets, marking a shift away from traditional card-based methods. The number of Point-of-Sale (POS) terminals grew to 132,224, facilitating 83 million transactions worth Rs. 429 billion. ATMs also remained essential for cash withdrawals, with the network expanding to 19,170 units, enabling 243 million transactions worth Rs. 3.9 trillion.
Branchless banking agents significantly contributed to financial inclusion, particularly in rural and underserved areas. Over 693,178 agents handled 28 million bill payments and mobile top-ups, along with 75 million cash deposit and withdrawal transactions. Retail merchants accepting digital payments increased by 16%, supported by mobile wallets, QR codes, and other digital tools. These developments highlight the role of alternative financial channels in reducing regional economic disparities. Additionally, the Raast instant payment system processed 197 million transactions worth Rs. 4.7 trillion, enhancing instant payment efficiency for individuals and businesses.
The SBP emphasized that Pakistan’s payment ecosystem is flourishing due to collaboration among banks, fintechs, payment service providers, and regulators. This teamwork has driven innovation, improved accessibility, and promoted financial inclusion across the nation.
