KARACHI: Retail payment volumes rose to 2.8 billion transactions in the July-September quarter, up 10 per cent from the previous quarter, while the value of retail payments increased 6pc to Rs166 trillion, a State Bank report said on Tuesday.

“This expansion was primarily driven by the continued rise in mobile app-based banking,” the central bank said in its Quarterly Payment Systems Review for FY26. “Digital payment channels accounted for 2.5bn transactions, representing 90pc of total retail payments compared to 87pc in the same quarter last year.”

“Pakistan’s payment systems are increasingly reflecting the outcomes of sustained policy focus on digitisation and market innovation. Regulatory initiatives led by the State Bank, alongside operational advancements by banks, Electronic Money Institutions (EMIs), and fintechs, have collectively enhanced the accessibility, efficiency and usability of digital payment channels,” the report said.

The value of transactions through digital channels reached Rs55tr, underscoring the growing usage of these channels across the economy.

SBP says digital channels account for 90pc of retail payments in July-Sept

Mobile app-based payments dominated the digital landscape, with 2bn transactions carried out through apps offered by banks, branchless banking providers and EMIs.

These transactions accounted for 81pc of all digital payments, amounting to Rs33.7tr. This channel is used for various types of digital payments, including person-to-person payments, bill payments and wallet-based merchant payments on both online platforms and in physical retail outlets.

“Internet banking also saw steady expansion, with an increasing number of users conducting transactions through digital channels,” said the report, adding that card users also expanded, with payment cards in circulation reaching 61.3 million, of which 90pc are debit cards and 4pc are credit cards.

The Raast Instant Payment System continues to maintain strong growth momentum. Person-to-Person (P2P) transactions rose to 535m (up 31pc) with a value of Rs11.3tr during the quarter. Raast person-to-merchant (P2M) transactions, on the other hand, doubled to 4.3m, amounting to Rs17bn. Overall, Raast processed 544m transactions valuing Rs12.8tr.

Point-of-sale (PoS) and e-commerce activity continued to grow, registering 1.5m daily card-based transactions.

A network of 20,527 ATMs facilitated 267m transactions worth Rs4.5tr across the country. On average, each ATM handled 142 transactions per day, with an average ticket size of Rs16,800.

Alongside ATMs and digital channels, physical touchpoints continued to support retail payments. The report said 19,852 bank branches and 756,480 branchless banking agents provided over-the-counter services, including cash deposits, withdrawals, fund transfers and bill payments.

Bank branches processed 137m transactions worth Rs110tr, while branchless banking agents facilitated 129m transactions amounting to Rs0.9tr.

The report said that these developments collectively reflect continued progress towards a more inclusive, efficient and digitally enabled payments ecosystem in Pakistan.

“The growing preference for digital modes among consumers and businesses points to strengthening user confidence, network effects arising from wider merchant acceptance and a gradual reorientation of payment behaviour towards alternative cash transactions,” it added.

Published in Dawn, December 31st, 2025