Islamabad – The digital payment ecosystem in Pakistan continues to strengthen, with 88 percent of all retail transactions processed through digital channels in the second quarter of the fiscal year 2025 (Q2-FY25), according to the State Bank of Pakistan (SBP). Mobile banking applications, branchless banking (BB) wallets, and e-money wallets played a pivotal role in driving this growth.
In Q2-FY25, these platforms collectively processed 1,450 million transactions, amounting to Rs. 24 trillion. This represents a 12 percent increase in transaction volume and a 28 percent rise in value compared to the previous quarter. The number of users utilizing digital banking services also witnessed steady growth. Mobile banking app users surged to 21 million, marking a 7 percent increase, while e-money and BB wallet users grew by 13 percent and 7 percent, respectively, reaching 4.7 million and 64.3 million users. Internet banking users also climbed to 13.3 million, registering a 7 percent rise.
Surge in E-Commerce and POS Transactions
E-commerce transactions experienced significant growth, with volume rising by 30 percent to 152 million transactions. The total value of these transactions also saw a 32 percent increase, reaching Rs. 193 billion. By volume, 8 percent (12.8 million) of e-commerce transactions were made using cards, whereas 92 percent (139.5 million) were processed via digital wallets and accounts. In terms of value, 33 percent of transactions were card-based, while 67 percent were settled through digital payment channels.
Point-of-sale (POS) transactions also expanded, with 115,177 POS-enabled merchants operating 151,646 POS terminals, facilitating 89 million in-store transactions valued at Rs. 510 billion. This represents a 7 percent increase in transaction volume and a 19 percent rise in value. Retail and kiryana store merchants accepting QR and BB wallet payments processed 22.1 million transactions worth Rs. 58 billion, reflecting growth of 4 percent and 9 percent, respectively.
Role of SBP-Operated Payment Systems
SBP-operated payment systems, including Raast (Instant Payment System) and the Real-Time Gross Settlement (RTGS) system, have played a crucial role in enhancing digital transactions. Raast processed 296 million transactions worth Rs. 6.4 trillion during Q2-FY25, bringing cumulative transactions since its launch to 1,144 million, valued at Rs. 26 trillion. The RTGS system settled large-value transactions totaling Rs. 330 trillion, reflecting a 19 percent increase in value.
Retail transactions saw an 11 percent increase in volume, reaching 2,143 million, while their total value climbed 12 percent to Rs. 154 trillion. This growth was primarily driven by mobile banking app payments, internet banking transactions, and over-the-counter (OTC) banking transactions, according to SBP’s Quarterly Payment Systems Review for Q2-FY25.
Pakistan’s Digital Transformation Accelerates
Pakistan’s shift toward a digital economy is being driven by SBP’s strategic initiatives and the collaborative efforts of banks, fintech companies, and payment service providers. As digital payments continue to expand, SBP remains committed to fostering financial inclusion and enhancing payment efficiency for individuals and businesses across the country.
