KARACHI: Payments through digital channels accounted for 88 per cent of all retail transactions in FY25, up from 78pc in FY23 and 85pc in FY24, according to the State Bank of Pakistan’s Annual Report on Payment Systems released on Monday.

The SBP said the rapid growth of digital payments has not only improved convenience for consumers but also enhanced the country’s image internationally. However, it cautioned that rising cybercrime remains a growing threat to the financial system.

A Wakefield Research–Visa survey earlier this year found that 55pc of Pakistanis had fallen victim to online financial fraud. The central bank said it has advised commercial banks to strengthen their cybersecurity measures to protect customers as digital transactions expand.

Despite these challenges, the report described the surge in electronic payments as “remarkable”. It said transaction counts rose by 396pc, while the value of transactions increased by 731pc, reflecting “the enthusiastic adoption by market participants” and a decisive shift toward digital finance.

Retail payments climbed to 9.1 billion transactions worth Rs612 trillion, marking year-on-year growth of 38pc in volume and 12pc in value.

Mobile banking led the sector with 6.2bn transactions, up 52pc, while internet banking handled 297 million transactions, an increase of 33pc. E-money wallets recorded the fastest expansion, with both transaction volume and value doubling during the year — evidence of growing public trust in electronic money institutions.

The SBP noted that Raast, Pakistan’s instant payment platform, more than doubled its transactions in both count and value, establishing itself as a “cornerstone” of the digital ecosystem.

The launch of Raast Person-to-Merchant (P2M) services, it said, marked the start of a transformative shift towards financial inclusivity, faster settlements, and a stronger digital payment trail.

During FY25, the central bank issued a commercial licence to SafePay (Pvt) Ltd, enabling it to operate as an e-commerce payment gateway provider. The SBP said the new entrant would expand and diversify Pakistan’s online payment landscape, fostering competition and innovation.

Two Electronic Money Institutions (EMIs) — E-Processing Systems (Pvt) Ltd and Wemsol (Pvt) Ltd — began live operations, while Hubpay (Pvt) Ltd and YAP (Pvt) Ltd received pilot approvals to launch digital wallets. These developments, the report noted, are expected to further boost adoption and deepen financial inclusion across the country.

Published in Dawn, November 4th, 2025