Digital payments in Pakistan reach record volume in second quarter of FY25

Pakistan's digital payment channels processed 88% of all retail transactions by volume in the second quarter of fiscal year 2025, with mobile app-based banking driving much of the activity, according to a report released Friday by the State Bank of Pakistan (SBP).

The SBP's Quarterly Payment Systems Review highlighted significant growth in digital payments, with mobile banking apps, branchless banking (BB) wallets, and e-money wallets collectively processing 1,450 million transactions worth PKR 24 trillion.

This represented a 12% increase in transaction volume and a 28% rise in transaction value compared to the previous quarter.

The report also revealed steady growth in the number of users leveraging digital banking services.

Mobile banking app users increased by 7% to 21 million, while users of e-money wallets grew by 13% to 4.7 million, and BB wallet users rose by 7% to 64.3 million. Internet banking users also reached 13.3 million, up 7%.

Retail transactions saw an 11% increase in volume, reaching 2,143 million, and a 12% rise in value to PKR 154 trillion. These gains were primarily driven by mobile banking app payments, internet banking payments, and over-the-counter transactions at bank branches.

Merchant payments also expanded during the quarter, with e-commerce transactions growing 30% in volume to 152 million and 32% in value to PKR 193 billion. By volume, 92% of e-commerce transactions were processed through digital wallets/accounts, while cards accounted for 8%. By value, 67% of e-commerce transactions were conducted through digital wallets/accounts, compared to 33% via cards.

Point-of-sale (POS) systems saw continued growth, with 115,177 POS-enabled merchants operating 151,646 terminals to facilitate 89 million in-store transactions—a 7% increase from the previous quarter—totaling PKR 510 billion, up 19%.

Additionally, retail and Kiryana store merchants accepting payments via QR codes or BB wallets processed 22.1 million transactions worth PKR 58 billion, reflecting growth of 4% and 9% respectively.

State Bank-operated payment systems contributed significantly to the digitalization of payments. The Raast Instant Payment System processed 296 million transactions worth PKR 6.4 trillion in the quarter, bringing cumulative transactions since its launch to 1,144 million, valued at PKR 26 trillion.

The RTGS system, used for large-value transactions, settled transactions worth PKR 330 trillion, a 19% increase in value.

The SBP emphasized its commitment to fostering financial inclusion and enhancing payment efficiency for individuals and businesses. Pakistan's transition toward a digital e

onomy is supported by the SBP’s strategic initiatives and collaborative efforts with banks, fintechs, and payment service providers.