Digital Payments Account for 92% of Retail Transactions

Pakistan continued to witness strong growth in digital financial transactions during the January–March 2026 quarter, with electronic payment channels accounting for 92% of all retail transactions processed through the country's formal banking and payment infrastructure, according to the State Bank of Pakistan (SBP).

In its Quarterly Report on Payment Systems (January–March 2026), the SBP reported that approximately 3.7 billion retail transactions, collectively valued at Rs168.8 trillion, were processed through regulated banking institutions and digital payment platforms during the quarter. The reported figures relate solely to transactions conducted within the formal financial system and do not include cash transactions carried out outside regulated payment channels.

Compared with the preceding quarter, the overall volume of retail transactions increased by 9%, reflecting continued growth in the adoption of formal payment mechanisms across the country.

Digital payment channels accounted for approximately 3.4 billion transactions with a combined value of Rs68 trillion, reaffirming the growing preference among consumers and businesses for electronic payment methods over conventional cash-based transactions.

Mobile application-based payments remained the dominant segment of the digital payments ecosystem, recording approximately 2.9 billion transactions through applications offered by commercial banks, branchless banking service providers, and Electronic Money Institutions (EMIs).

These mobile app transactions represented nearly 78% of all digital payment activity and carried a cumulative value of approximately Rs42 trillion. The transactions included person-to-person fund transfers, utility bill payments, and merchant payments executed through bank accounts and digital wallets across both online platforms and physical retail outlets.

Internet banking services also recorded sustained growth during the quarter, with transaction volumes increasing by 5% and transaction values rising by 19% compared with the previous reporting period.

The SBP further reported that the Raast Instant Payment System processed approximately 742.1 million transactions amounting to Rs23.3 trillion during the January–March 2026 quarter.

Within the Raast ecosystem, person-to-person (P2P) transactions increased by 10% to reach 664 million transactions, representing a total value of Rs18.9 trillion. Meanwhile, person-to-merchant (P2M) transactions also recorded notable expansion, increasing from 36.3 million in the previous quarter to 55.9 million transactions.

Despite the rapid expansion of digital payments, traditional banking channels continued to play a significant role in financial service delivery. During the reporting period, 20,232 bank branches and approximately 819,397 banking agents continued to provide over-the-counter services, including cash deposits, withdrawals, fund transfers, and bill payment facilities.

According to the report, commercial bank branches processed approximately 128 million transactions valued at Rs99.5 trillion, while banking agents facilitated an additional 155 million transactions amounting to Rs1.1 trillion.

The State Bank concluded that the latest figures reflect Pakistan’s continued transition toward formal, technology-driven, and digitally integrated payment systems, highlighting the increasing adoption of electronic payment channels by individuals and businesses across the country.