April 1st, 2025: Pakistan’s Digital Transactions Surge: 88% of Retail Payments Now Digital in Q2-FY25.

Pakistan’s Digital Transactions Surge: 88% of Retail Payments Now Digital

  1. Digital Payments Reach 1,450 Million Transactions, Covering 88% of Retail Payments

Pakistan’s financial ecosystem is experiencing a significant digital shift, with digital channels processing 88% of all retail transactions. Mobile banking apps, branchless banking (BB) wallets, and e-money wallets collectively handled 1,450 million transactions worth Rs. 24 trillion in Q2-FY25. This marks a 12% increase in volume and a 28% rise in transaction value, as per the State Bank of Pakistan’s (SBP) Quarterly Payment Systems Review.

  1. 103.3 Million Digital Banking Users Drive Growth

The expansion of digital banking services is reflected in the increasing number of users across different platforms:

21 million mobile banking users (7% increase).

4.7 million e-money wallet users (13% increase).

64.3 million BB wallet users (7% increase).

13.3 million internet banking users (7% increase).

This growing user base is a testament to the increasing trust and adoption of digital financial services in Pakistan.

  1. E-Commerce Transactions Surge 30% to 152 Million, Reaching Rs. 193 Billion

E-commerce transactions have seen substantial growth, indicating a shift toward cashless transactions:

152 million e-commerce transactions, up 30% in volume.

Total value reached Rs. 193 billion, reflecting a 32% increase.

8% (12.8 million transactions) were made via cards, while 92% (139.5 million) were conducted through digital wallets/accounts.

In terms of value, cards contributed 33%, while digital wallets accounted for 67%.

  1. POS Transactions Grow to 89 Million, Valued at Rs. 510 Billion

Merchant payments through 115,177 POS-enabled merchants using 151,646 terminals also experienced growth:

89 million in-store transactions (7% increase).

Rs. 510 billion total transaction value (19% increase).

Additionally, retail and kiryana stores accepting QR code or BB wallet payments processed 22.1 million transactions worth Rs. 58 billion, marking 4% and 9% growth, respectively.

  1. Raast and RTGS Process Rs. 336.4 Trillion in Digital Payments

Pakistan’s digital financial ecosystem is supported by SBP-operated payment systems, which have played a crucial role in accelerating digital payments:

Raast processed 296 million transactions worth Rs. 6.4 trillion in Q2-FY25. Since its launch, Raast has facilitated 1,144 million transactions valued at Rs. 26 trillion.

RTGS settled large-value transactions worth Rs. 330 trillion, marking a 19% increase in value.

These systems have significantly improved the speed, reliability, and efficiency of digital transactions in Pakistan.

  1. Retail Transactions Reach 2,143 Million, Valued at Rs. 154 Trillion

Retail transactions also showed strong growth:

2,143 million transactions, reflecting an 11% increase in volume.

Total transaction value reached Rs. 154 trillion, a 12% rise.

This growth was largely driven by:

Mobile banking transactions

Internet banking payments

Over-the-counter (OTC) banking services

  1. Pakistan’s Digital Economy Expands as SBP Leads Financial Inclusion

Pakistan’s journey towards a cashless economy is being propelled by SBP’s strategic initiatives and partnerships with banks, fintech firms, and payment service providers. As digital payments continue to expand, SBP remains focused on:

Enhancing financial inclusion.

Improving payment system efficiency.

Encouraging innovation in digital banking.

Conclusion: Digital Payments Are Reshaping Pakistan’s Economy

The rapid growth in digital transactions, increasing user adoption, and expansion of digital payment infrastructure signal a strong shift towards a digital financial ecosystem in Pakistan. With continued regulatory support and technological advancements, the country is on track to further drive financial inclusion and economic digitization.

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