Digital Transactions Covered Almost 90% of Retail Payments in Pakistan in Q3 FY25

Digital payment channels processed 89 percent of all retail transactions by volume, with mobile app-based banking playing a crucial role. According to the State Bank of Pakistan’s (SBP) recently released Quarterly Payment Systems Review for the third quarter of FY25, digital payments in Pakistan continued their upward trajectory during Q3-FY25, with a substantial increase in both transaction volume and value. Retail payment volumes rose by 12 percent to reach 2,408 million transactions, while the total transaction value was worth Rs. 164 trillion. Mobile app-based platforms, including mobile banking apps, branchless banking (BB) wallets, and e-money wallets, collectively processed 1,686 million transactions amounting to Rs. 27 trillion. This reflects a 16 percent increase in volume and a 22 percent rise in value compared to the previous quarter. The number of digital banking users also showed steady growth. Mobile banking app users increased to 22.6 million (up 7 percent), while e-money and BB wallet users reached 5.3 million (up 12 percent) and 68.5 million (up 6 percent), respectively. Internet banking users rose to 14.1 million, marking a 7 percent increase. E-commerce payments saw robust growth, increasing by 40 percent in volume to 213 million and by 34 percent in value to PKR 258 billion. Digital wallets were the dominant method, accounting for 94 percent (199.1 million) of e-commerce payments by value. In contrast, card-based online payments contributed only 6 percent (13.5 million). For in-store purchases, 140,861 merchants processed 99 million transactions (up 12 percent) worth Rs. 550 billion (up 8 percent) using a network of 179,383 point-of-sale terminals. Additionally, merchants accepting QR codes processed 21.7 million transactions valued at Rs. 61 billion. SBP-operated payment systems—Raast (Instant Payment System) and RTGS (Real-Time Gross Settlement System)—continued to play a pivotal role in driving digital payments. During the quarter, Raast processed 371 million transactions worth Rs. 8.5 trillion, bringing cumulative volumes since launch to 1.5 billion transactions valued at over Rs. 34 trillion. The RTGS system handled 1.5 million large-value transactions amounting to Rs. 347 trillion. The ongoing shift towards a digital economy is being strongly supported by SBP’s strategic initiatives and the collaborative efforts of banks, fintech companies, and payment service providers. As digital payments continue to expand, SBP remains committed to promoting financial inclusion and enhancing payment efficiency for all stakeholders.