Regardless of the pandemic and apps marketing everything from groceries to TVs, the average value of e-commerce transactions has remained below Rs5,000 over the last five years, as per the calculations based on the data given in the latest Payment Systems Review FY23 by the State Bank.

On the other hand, internet banking has increased more than 2x times, but the most growth in terms of e-transactions is through RTOB. People are transferring bigger amounts from one bank to another. One reason could be as simple as inflation, which has eroded the value of the rupee.

Regarding digitising Pakistan’s payment system, the lion’s share belongs to real-time online branches (RTOB), through which bank customers can make over-the-counter transactions such as cash deposits and withdrawals. Within the RTOB channel, intra-bank funds transfer account for 71pc and cash deposits for 20pc.

Trends identified by the State Bank indicate that people opt for e-banking channels for smaller payments but hard currency for higher-value transactions. On average, people deposit Rs300,000 in cash and withdraw Rs200,000 from bank counters, meaning, on any given day, thousands are walking around carrying hundreds of thousands, if not more, in their pockets.

Published in Dawn, The Business and Finance Weekly, October 2nd, 2023