Digital payments make up 92pc of retail transactions in Pakistan: SBP

Digital payment channels continued to strengthen their hold on Pakistan’s banking ecosystem during the second quarter of FY26, with the State Bank of Pakistan reporting that 92 per cent of all retail transactions were carried out digitally.

The central bank released its latest quarterly review of payment systems on Thursday, covering the period from October to December 2025.

During the quarter, Pakistan recorded 3.4 billion retail transactions in total. Of these, 3.1 billion were completed through digital platforms, showing a clear shift in consumer and business payment behaviour. In the same quarter a year earlier, digital channels accounted for 88 per cent of retail transactions.

Overall retail transaction activity also expanded compared to the previous quarter. The total number of transactions rose by eight per cent, while the overall value increased by seven per cent to Rs167 trillion. Digital transactions alone were worth Rs64 trillion, underscoring the growing reliance on electronic payment methods across the economy.

Mobile app-based transactions remained the main driver of this growth. Apps offered by banks, branchless banking providers and electronic money institutions handled 2.6 billion transactions during the quarter. These payments made up 83 per cent of all digital transaction volume and carried a combined value of Rs40 trillion. App-based services continued to support everyday financial activity, including person-to-person transfers, utility bill payments and merchant payments made through wallets and bank accounts, both online and at physical stores.

Internet banking also posted gains over the quarter, with transaction volume increasing by 11 per cent and transaction value rising by 22 per cent.

Raast, Pakistan’s instant payment system, also maintained strong growth momentum. It processed 645.7 million transactions worth Rs18.5 trillion during the quarter. Person-to-person transfers remained the largest segment, rising 13 per cent to 603 million transactions with a total value of Rs15.7 trillion.

Merchant payments through Raast also expanded sharply. Raast P2M transactions reached 33.6 million during the quarter, with a combined value of Rs167.6 billion. Meanwhile, the Raast Bulk Service handled more than nine million transactions worth Rs2.6 trillion for government entities and corporate users.

Card-based spending at point-of-sale terminals and through e-commerce platforms also continued to grow, with around 1.7 million such transactions being processed daily.

At the same time, traditional banking infrastructure remained active alongside the digital shift. A nationwide network of 20,976 ATMs processed 277 million transactions worth Rs4.9 trillion during the quarter. Over-the-counter services were also delivered through 20,143 bank branches and 763,262 banking agents, supporting services such as cash withdrawals, deposits, fund transfers and bill payments.