Digital payment channels handled 88 percent of total retail transactions by volume, with mobile app-based banking being a key contributor.

These channels, such as mobile banking apps, BB wallets, and e-money wallets, handled 1,450 million transactions worth Rs. 24 trillion. This is an increase of 12 percent in volume and 28 percent in value, the State Bank of Pakistan (SBP) says. The payments landscape in Pakistan remains robust with further growth in transactions during Q2-FY25.

The user base of digital banking services also experienced consistent increases. Users of mobile banking applications increased to 21 million (7 percent), and e-money and BB wallet users to 4.7 million (13 percent) and 64.3 million (7 percent), respectively. Internet banking users increased to 13.3 million (7 percent). Merchant payments through digital channels also increased this quarter. E-commerce transactions increased by 30 percent in volume to 152 million, worth Rs. 193 billion (32 percent).

By value, 8 percent (12.8 million) of e-commerce transactions were done via cards, and 92 percent (139.5 million) were done through digital wallets/accounts. As a percentage of value, this proportion was 33 percent and 67 percent, respectively. Through 115,177 POS-enabled merchants with 151,646 POS terminals, 89 million (7 percent) of the in-store purchases were worth Rs. 510 billion (19 percent). Retail and kiryana shop merchants accepting BB wallet or QR payments made 22.1 million transactions amounting to Rs. 58 billion, showing 4 percent and 9 percent growth, respectively.

SBP-run payment systems, Raast (Instant Payment System) and RTGS (Real-Time Gross Settlement System) were instrumental in speeding up digital payments nationwide. Raast carried out 296 million transactions worth Rs. 6.4 trillion in Q2-FY25, taking cumulative transactions since inception to 1,144 million, worth Rs. 26 trillion. The RTGS system settled large-value transactions amounting to Rs. 330 trillion, up 19 percent in value.

Retail transactions increased 11 percent in terms of volume to 2,143 million and their cumulative value increased 12 percent to Rs. 154 trillion. Growth was dominated by mobile banking app payments, internet banking transfers, and over-the-counter (OTC) banking transactions, states SBP's Quarterly Payment Systems Review Q2-FY25.

Pakistan's shift toward a digital economy is initiated by SBP's strategic steps and joint activities of banks, fintech organizations, and payment service providers. With digital payments continuing to increase, SBP is still engaged in promoting financial inclusion and maximizing payment efficiency for individuals and entities.