Pakistan’s journey towards a cashless society is accelerating at an unprecedented pace. The State Bank of Pakistan’s (SBP) recently released Quarterly Payment Systems Review for the third quarter of FY25 paints a clear picture of this transformation: an overwhelming 89% of all retail transactions by volume are now conducted digitally. This signifies a monumental step forward in the country’s economic evolution.
The overall retail payment landscape witnessed robust growth, with transaction volumes climbing by 12% to reach an impressive 2,408 million transactions. The total value of these transactions amounted to a substantial Rs. 164 trillion. This upward trajectory is a testament to the increasing confidence and adoption of digital payment methods across various segments of society.
A key driver of this digital surge has been mobile app-based platforms. Mobile banking apps, branchless banking (BB) wallets, and e-money wallets collectively processed a staggering 1,686 million transactions, totaling Rs. 27 trillion. This represents a significant 16% increase in volume and a remarkable 22% rise in value compared to the previous quarter, underscoring the vital role these platforms play in facilitating everyday transactions.
User adoption of digital banking services also continues to expand steadily. Mobile banking app users grew to 22.6 million, marking a 7% increase. E-money wallet users saw a 12% rise to 5.3 million, while branchless banking (BB) wallet users reached 68.5 million, up by 6%. Even internet banking users demonstrated healthy growth, increasing by 7% to 14.1 million. These figures highlight a widespread embrace of digital financial tools across diverse demographics.
The e-commerce sector, in particular, has experienced explosive growth. Online payments surged by 40% in volume to 213 million transactions and by 34% in value to PKR 258 billion. Digital wallets emerged as the undisputed leader in this space, accounting for a dominant 94% (199.1 million) of e-commerce payments by value, significantly outperforming card-based online payments which contributed only 6% (13.5 million). This trend indicates a strong preference for the convenience and accessibility offered by digital wallets for online purchases.
For brick-and-mortar transactions, the digital footprint is also expanding. Over 140,861 merchants processed 99 million transactions (up 12%) worth Rs. 550 billion (up 8%) utilizing a network of 179,383 point-of-sale (POS) terminals. Furthermore, the growing adoption of QR codes is evident, with merchants processing 21.7 million transactions valued at Rs. 61 billion through this convenient payment method.
The SBP’s own innovative payment systems, Raast (Instant Payment System) and RTGS (Real-Time Gross Settlement System), have been instrumental in fostering this digital revolution. During Q3 FY25, Raast processed 371 million transactions valued at Rs. 8.5 trillion, bringing its cumulative volumes since launch to an impressive 1.5 billion transactions worth over Rs. 34 trillion. The RTGS system, handling large-value transactions, efficiently processed 1.5 million transactions amounting to a staggering Rs. 347 trillion. These systems provide the backbone for a seamless and efficient digital payment ecosystem.
This ongoing shift towards a more digitized economy is a result of the SBP’s strategic initiatives and the collaborative efforts of banks, fintech companies, and payment service providers. As digital payments continue to gain momentum, the SBP remains steadfast in its commitment to promoting financial inclusion and enhancing the overall efficiency of payment systems for all stakeholders in Pakistan.
