Pakistan Digital Payments Skyrocket, 88 percent of Transactions Now Digital

Prepare to be astonished! Pakistan’s digital payment revolution is exploding with 88% of all retail transactions now surging through digital channels by volume, and mobile banking apps are leading the charge! According to the State Bank of Pakistan (SBP), these powerhouse platforms—including mobile banking apps, branchless banking (BB) wallets, and e-money wallets—have blazed through 1.45 billion transactions, racking up a staggering Rs. 24 trillion in value. That’s a mind-blowing 12% jump in transaction volume and a jaw-dropping 28% spike in value. And guess what? The momentum is only intensifying, with experts predicting even more explosive growth in Q2-FY25.

The thirst for digital banking is unstoppable. Mobile banking app users have skyrocketed by 7%, now hitting 21 million strong. E-money and BB wallet users aren’t far behind, surging by 13% and 7%, respectively, to 4.7 million and a whopping 64.3 million. Even internet banking users are climbing, up 7% to 13.3 million. Meanwhile, merchant payments via digital platforms are shattering records, with e-commerce transactions skyrocketing by 30% in volume to 152 million, totaling a massive Rs. 193 billion—that’s a 32% leap in value!

When it comes to e-commerce, digital wallets are the kings, handling 92% of transactions (139.5 million) by volume, while cards account for just 8% (12.8 million). In value, digital wallets still dominate with 67%, leaving cards with 33%. On the ground, POS-enabled merchants have swelled to 115,177, with 151,646 POS terminals driving 89 million in-store purchases worth a hefty Rs. 510 billion—a 19% surge! Even retail and kiryana stores accepting QR codes or BB wallet payments processed 22.1 million transactions worth Rs. 58 billion, with growth rates of 4% and 9%.

The SBP isn’t just watching—this is their masterplan in action! Their Raast (Instant Payment System) and RTGS (Real-Time Gross Settlement System) are the backbone of this digital surge. Raast alone crushed 296 million transactions worth Rs. 6.4 trillion in Q2-FY25, pushing its all-time total to 1.144 billion transactions and Rs. 26 trillion since launch. The RTGS system settled giant-value transactions totaling Rs. 330 trillion, up a whopping 19%!

Overall, retail transactions are on fire, up 11% in volume to 2.14 billion and 12% in value to Rs. 154 trillion, fueled by mobile banking, internet banking, and over-the-counter (OTC) banking. The SBP’s Quarterly Payment Systems Review for Q2-FY25 calls this a landmark shift.

Pakistan is charging toward a digital economy, and the SBP, banks, fintechs, and payment providers are the engine driving financial inclusion and efficiency to new heights. Get ready—this is only the beginning!