87% retail payments made through digital channels in Pakistan
In the first quarter of fiscal year
2025, 87% of retail payments in Pakistan were made through digital channels,
highlighting the increasing public trust in digital payment systems.
The State Bank of Pakistan (SBP)
released its Payment System Review for Q1 FY2025, showing significant progress
toward a cashless and inclusive economy. The report emphasizes a notable rise
in digital payment adoption, infrastructure improvements, and the gradual shift
away from cash-based transactions.
The report reveals that the volume
of retail payments grew by 8% to 195.1 billion transactions, totaling PKR 136
trillion. Digital payments, in particular, saw a 9% increase in both volume and
value, reaching 16.9 billion transactions worth PKR 36 trillion.
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The findings indicate that 87% of
retail payments are now processed digitally, reflecting a growing confidence in
the digital payment ecosystem. The number of mobile banking app users also grew
by 4%, reaching 96.5 million. During this period, mobile banking apps
facilitated 13.01 billion transactions valued at PKR 19 trillion, marking an
11% rise in transaction volume and a 14% increase in value.
E-commerce played a significant role
in this digital shift, with online payments rising by 29%. Of the 118 million
e-commerce transactions, 91% were made through digital channels.
Additionally, the number of Point of
Sale (POS) terminals grew to 132,000, processing 83 million transactions worth
PKR 429 billion. ATMs also saw a boost, with 19,170 units facilitating 243
million transactions worth PKR 39 trillion.
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Branchless banking agents,
particularly in rural areas, contributed significantly, processing 28 million
bill payments, mobile top-ups, and 75 million deposit and withdrawal
transactions.
The report also highlighted a 16%
increase in the number of retail merchants accepting digital payments, with 197
million transactions worth PKR 4.7 trillion processed via the "Raast"
instant payment system.
The State Bank attributed the
continued growth and development of Pakistan's payment system to the
collaborative efforts of banks, fintech companies, payment service providers,
and regulators.
Source: Minute Mirror