Pakistan witnesses 8% growth in digital payments in Q1 FY25: SBP

The report underscores the transformative potential of digital infrastructure in driving economic growth in Pakistan
 

Record 8% growth witnessed in digital payments in Q1 FY25: SBP

The State Bank of Pakistan (SBP) reported an 8% increase in retail payments during the first quarter of fiscal year 2024-25 (Q1 FY25). Digital payments grew by 9% in both volume and value, reflecting Pakistan’s ongoing transition toward a cashless and digitally inclusive economy.

The SBP's Quarterly Payment Systems Review for July to September 2024 highlights significant progress in digital payment adoption, infrastructure development, and a gradual shift from cash-based transactions.

 

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Key Findings from the Report:

  • Retail Payments: Grew by 8% in volume, reaching 1,951 million transactions worth PKR 136 trillion.
  • Digital Payments: Increased by 9% to 1,699 million transactions, totaling PKR 36 trillion in value.
  • Mobile Banking Apps: Played a crucial role, with 1,301 million transactions worth PKR 19 trillion—a rise of 11% in volume and 14% in value. Mobile app users increased by 4%, reaching 96.5 million.
  • E-Commerce: Online payments surged by 29%, with 91% of 118 million transactions conducted through digital wallets, signaling a shift from traditional card-based payments.

Supporting Infrastructure Growth:

  • Point-of-Sale (POS) Terminals: Expanded to 132,224 units, enabling 83 million transactions worth PKR 429 billion.
  • ATMs: Increased to 19,170 units, processing 243 million transactions valued at PKR 3.9 trillion.

The SBP emphasized that these advancements indicate growing trust in digital payments and mark significant strides toward a fully digital economy. With 87% of retail payments now conducted through digital channels, Pakistan is on track to reduce its reliance on cash-based systems, foster innovation, and enhance financial inclusion.

 

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This report underscores the transformative potential of digital infrastructure in driving economic growth and modernizing the financial landscape in Pakistan.

Source: ARY News

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