By Staff Reporter
KARACHI: Pakistan’s digital payment landscape continued to strengthen in the second quarter, with retail transactions increasing 11 percent in volume to Rs2.143 billion and 12 percent in value to Rs154 trillion.
“The growth in value was primarily driven by mobile banking app payments, internet banking payments, and over-the-counter (OTC) transactions at bank branches,” the State Bank of Pakistan (SBP) said in its Quarterly Payment Systems Review.
Digital payment channels processed 88 percent of all retail transactions by volume, with mobile app-based banking playing a crucial role. These platforms, which include mobile banking apps, branchless banking (BB) wallets, and e-Money wallets, collectively processed 1.450 billion transactions worth Rs24 trillion, marking a 12 percent increase in volume and 28 percent increase in value.
The number of users leveraging digital banking services also saw a steady rise. Mobile banking app users grew to 21 million, a 7 percent increase, while e-Money and BB wallet users increased to 4.7 million and 64.3 million, respectively, representing a 13 percent and 7 percent growth. Internet banking users reached 13.3 million, a 7 percent increase.
Merchant payments through digital means also expanded this quarter. Digital e-commerce transactions increased by 30 percent in volume to 152 million, amounting to Rs193 billion, a 32 percent increase. By volume, 8 percent (12.8 million) of the e-commerce transactions were made through cards, while 92 percent (139.5 million) were made through digital wallets/accounts. By value, this share was 33 percent and 67 percent, respectively.
The 115,177 Point-of-Sale (POS) enabled merchants with 151,646 POS terminals facilitated 89 million in-store purchases, totaling Rs510 billion, a 19 percent increase. Retail/Kiryana store merchants accepting payments through QR or BB wallets reached 22.1 million in volume and Rs58 billion in value, a growth of 4 percent and 9 percent, respectively.
The SBP-operated payment systems, Raast (Instant Payment System) and RTGS (Real-time Gross Settlement System), played a key role in increasing the digitalization of payments. Raast Instant Payment System processed 296 million transactions worth Rs6.4 trillion during Q2-FY25, bringing cumulative transactions since inception to 1,144 million, valued at Rs26 trillion. The large-value transactions via RTGS system settled transactions worth Rs330 trillion, registering a 19 percent increase in value.
“Pakistan’s transition towards a digital economy is being driven by SBP’s strategic initiatives and the collaborative efforts of banks, fintechs, and payment service providers,” the central bank stated. “As digital payments continue to grow, SBP remains committed to fostering financial inclusion and enhancing payment efficiency for individuals and businesses alike.”
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