Pakistan sees spike in digital payments, driven by mobile apps

Pakistan has experienced a significant rise in digital payments, largely driven by mobile app-based banking.

During the quarter ended Sept. 30, 2024, payments through these apps accounted for 77% of all digital transactions by volume and 51% by value. Registered users on these apps increased by 4%, reaching 96.5 million from 93 million in the previous quarter.

A total of 1,301 million payments, valued at PKR 19 trillion, were made during the quarter, representing an 11% growth in volume and a 14% increase in value, with an average ticket size of PKR 14,400 per transaction. Retail transactions grew by 8% in volume, reaching 1,951 million and amounting to PKR 136 trillion.

Since its inception in 2022, Raast has processed 848 million transactions totaling over PKR 19 trillion. During Q1 FY25, both the volume (197 million) and value (PKR 4.7 trillion) of transactions grew by 17% compared to Q4 FY24, with daily transactions reaching 3 million. The number of registered Raast IDs stood at 39.5 million by the quarter’s end.

Internet banking portals saw 60 million transactions amounting to PKR 7.5 trillion, accounting for 4% of digital payments by volume and 21% by value. The number of users of these portals increased by 3%, reaching 12.4 million.

ATM transactions constituted 14% by volume and 11% by value of total digital transactions. Card-based transactions at POS terminals reached 83 million, representing 5% of digital payments, and amounted to PKR 429 billion, with a quarterly growth of 9% by volume.

Digital e-commerce payments continued to rise, with over 118 million online payments made during the quarter, showing a growth of 29% by volume and amounting to PKR 148 billion, a quarterly increase of 23%. As of the quarter’s end, 55.6 million payment cards were in circulation, with debit cards comprising 88% of the total.

The number of merchants accepting payment cards via POS terminals increased by 5% to 104,281, while e-commerce merchants expanded to 8,189, marking a quarterly growth of 5%. Pakistan’s extensive network includes 18,623 bank branches and 693,178 BB agents, serving rural and underserved areas.

These agents facilitated 28 million bill payments and top-ups, 64 million cash deposits, 11 million cash withdrawals, and 8 million other transactions.

The RTGS system settled 1.6 million large-value transactions totaling PKR 278 trillion, marking a quarterly growth of 13% in volume and 9% in value.

The primary objective of Pakistan's payment system is to provide safe, efficient, and reliable payment options for transferring funds, purchasing goods and services, settling payments, and moving cash. This system plays a crucial role in ensuring customers have access to secure and efficient payment options.