Pakistan’s Digital Payment Ecosystem Thrives: SBP’s Q1 FY25 Review Highlights Robust Growth
Islamabad, December 21, 2024 – The State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Review for Q1 FY25, showcasing the country’s significant progress towards a cashless and digitally inclusive economy. Covering the period from July to September 2024, the report highlights a surge in digital payment adoption, infrastructure development, and a gradual shift away from cash and paper-based instruments.
Retail Payments See Remarkable Growth
Retail payments in Q1 FY25 grew by 8% in volume to 1,951 million transactions, valued at Rs. 136 trillion. Digital channels handled an impressive 87% of these transactions by volume, underlining increasing trust in digital payment systems. Payments via digital channels saw a quarterly growth of 9% in both volume and value, reaching 1,699 million transactions worth Rs. 36 trillion.
Mobile banking apps emerged as a pivotal growth driver, facilitating 1,301 million transactions valued at Rs. 19 trillion, reflecting an 11% rise in volume and 14% in value. The number of mobile banking app users grew by 4%, reaching 96.5 million compared to 93 million in the previous quarter.
E-Commerce and POS Networks on the Rise
E-commerce continued to gain traction, recording a 29% increase in online payments. Of the 118 million online payments, 91% were conducted through digital wallets, signaling a shift away from traditional card-based systems.
The Point-of-Sale (POS) network also expanded to 132,224 terminals, enabling 83 million transactions worth Rs. 429 billion. Complementing this growth, the ATM network grew to 19,170 units, processing 243 million transactions valued at Rs. 3.9 trillion.
Financial Inclusion Gains Momentum
Branchless banking agents played a vital role in extending financial services to underserved areas, processing 28 million bill payments/mobile top-ups and 75 million cash deposit and withdrawal transactions during the quarter. The number of retail merchants accepting digital payments saw a 16% increase, driven by initiatives enabling payments via mobile wallets, QR codes, and other digital tools.
Raast: Transforming Instant Payments
The Raast instant payment system processed 197 million transactions worth Rs. 4.7 trillion, further enhancing the efficiency of instant payments for individuals and businesses.
Collaborative Efforts Drive Growth
The SBP attributed the thriving payment ecosystem to the combined efforts of banks, fintechs, payment service providers, and regulators. This collaborative approach has fostered innovation, accessibility, and financial inclusion across the country.
The report underscores Pakistan’s steady progress toward a more inclusive and cashless economy, setting the stage for further advancements in the digital financial landscape.
