Cash is still king. Gallup & Gilani Pakistan conducted a nationally representative survey that asked, “Please tell us how you made the payment while shopping online?” Six out of 10 respondents preferred cash on delivery (COD).

Of course, few people are shopping online to begin with. Another poll by Gallup & Gilani reveals that 91pc of Pakistanis have not purchased anything online in the last six months. While there has been a visible boom in digitisation and online shopping, mass adoption still has a long way to go.

However, according to the State Bank’s latest Payment System Quarterly Review, digital payments crossed two billion in the third quarter of FY25, with their share reaching 89pc of total retail payments. In terms of transaction value, digital payments accounted for only 29pc — Rs48 trillion — of retail payments.

On the surface, these trends appear contradictory. However, the SBP’s data captures all retail payments, not just e-commerce transactions. These include mobile wallet transfers, salary disbursements and bill payments. So while people are not necessarily purchasing goods online, bills are being paid digitally, and money is increasingly being transferred through online channels.

The most important clue, however, lies in the volume-versus-value split. While nine out of 10 transactions are digital, the fact that only 29pc — Rs48tr — of total value flows through digital channels indicates that 71pc of big-ticket transactions still prefer cash. Small-ticket, high-frequency transactions such as mobile top-ups sit comfortably on digital rails, but large-value purchases remain cash-based, pointing to the continued strength of the informal economy.

Fear of fraud, poor dispute resolution, weak consumer protection and inconsistent delivery quality are the main culprits holding back digital payments at checkout.

Until trust mechanisms improve, this behavioural gap between usage and confidence is likely to persist nationwide across platforms and payment modes.

Published in Dawn, The Business and Finance Weekly, December 22nd, 2025