Digital Transactions Dominate Retail Payments in Pakistan: SBP Report
Islamabad, July 2024 — Digital transactions accounted for 83% of total retail payments in Pakistan during the third quarter (January-March) of the fiscal year 2023-24, according to the State Bank of Pakistan‘s (SBP) Quarterly Payment Systems Report. The remaining 17% of transactions were conducted over-the-counter (OTC) at bank branches.
Banks and Electronic Money Institutions (EMIs) collectively processed 844 million retail payments amounting to Rs. 128,470 billion during the quarter. These transactions were categorized as follows:
- 47% funds transfers
- 33% cash withdrawals
- 11% POS and e-commerce purchases
- 6% bill payments and mobile top-ups
- The remaining transactions included deposits, tax payments, invoice-based payments, and donations.
The SBP report highlighted continuous and significant progress in the adoption of digital payment channels within Pakistan’s payment system. The digital user base in Pakistan saw an impressive average growth of 8%, reaching:
- 59 million branchless banking (BB) mobile app users
- 17 million mobile banking app users
- 11 million internet banking users
- 3 million EMIs’ e-wallet users
Mobile and internet banking services remained the preferred channels for customers, with mobile banking transactions increasing by 8% to 301 million and internet banking transactions growing by 3% to 59 million. The amounts processed through these channels reached Rs. 12,955 billion for mobile banking and Rs. 6,467 billion for internet banking.
The extensive network facilitating the delivery of payment services across Pakistan includes:
- 18,049 bank branches
- 18,655 ATMs
- 120,641 POS terminals
- 648,333 BB agents
Raast, Pakistan’s instant payment system, processed 140 million transactions totaling Rs. 3,437 billion in Q3 of FY24, marking a 31% increase in volume and a 48% increase in value from the previous quarter. This significant growth underscores Raast’s crucial role in the nation’s payment landscape.
Additionally, 1.5 million transactions amounting to Rs. 315,596 billion were settled through PRISM (RTGS), including the settlement of government securities, funds transfers, and ancillary clearing transactions.
The SBP report concludes that the continuous growth in digital transactions and the expanding digital user base demonstrate the increasing reliance on and trust in digital payment systems in Pakistan.
