• Mobile apps, wallets drive growth in digital payments
• Raast processes Rs23.3tr transactions in third quarter

KARACHI: Digital payment channels continued to reshape Pakistan’s banking payment system as transactions worth Rs168.8 trillion were conducted through these channels during the third quarter of FY26.

The State Bank of Pakistan on Thursday issued its quarterly report on the payment system for January-March 2026.

“Digital payment channels are becoming increasingly embedded in Pakistan’s financial ecosystem, reshaping the way individuals and businesses initiate, receive and manage payments,” the SBP report said.

During January-March 2026, payments through digital channels continued their growth momentum, reflecting increasing adoption across the country.

The number of quarterly retail payments conducted through the banking system reached 3.7 billion, registering quarterly growth of nine per cent, while the value of transactions increased to Rs168.8tr. Cash-based transactions conducted outside the banking system are not part of the review.

“Digital payment channels processed 3.4bn transactions, accounting for a 92pc share in total retail payments by volume,” the report said. These channels primarily include mobile banking apps and wallets, internet banking portals, USSD, ATMs, POS machines, e-commerce platforms and call/IVR banking services.

The value of these transactions reached Rs68.3tr, up from Rs64.4tr in the previous quarter. Mobile banking apps and e-money wallets remained the dominant drivers of digital payments.

During the quarter, 2.89bn transactions amounting to Rs41.67tr were conducted through banking apps and wallets offered by banks, branchless banking providers and electronic money institutions (EMIs).

The number of app-based banking and internet banking users continued to increase during the quarter. As of March 2026, branchless banking mobile app users reached 95.8m, banking mobile app users increased to 28.9m, EMI wallet app users rose to 7.3m, and internet banking users reached 16.2m.

“This scale and growth reflect increasing consumer preference for wallets and apps as convenient and secure digital payment channels,” the SBP said. Raast adoption maintained strong momentum during the quarter. Raast P2P transactions increased to 664m, amounting to Rs18.88tr, from 603m transactions worth Rs15.69tr in the previous quarter. Raast P2M services also continued to expand, with over 2.6m merchants onboarded or registered with aliases by quarter-end.

“Overall, Raast processed 742m transactions amounting to Rs23.27tr during the quarter, highlighting its increasing adoption in Pakistan’s digital payment ecosystem,” the report said.

As of quarter-end, total payment cards in circulation reached 68.25m, of which debit cards accounted for the largest share at 84pc, or 57.2m.

During the quarter, payment cards were used to conduct 272.2m transactions worth Rs4.99tr at ATMs, 150.4m transactions worth Rs0.81tr at POS terminals and 32.3m transactions worth Rs0.14tr at e-commerce platforms.

QR-enabled merchant payments also showed continued growth during the quarter. Transactions through QR merchants reached 87.3m, showing 41pc quarter-on-quarter growth, and amounted to Rs0.5tr, reflecting 63pc growth, amid increasing merchant acceptance of digital payments.

“E-commerce activity via accounts and wallets continued to expand during the quarter. A total of 434.5m online purchases amounting to Rs0.47tr were conducted through account/wallet-based payment channels,” the report said.

Despite increasing digitisation, bank branches and branchless banking agents continued to play an important role in providing over-the-counter financial services.

The RTGS system, PRISM+, which processes large-value transactions in the country, settled 1.5m transactions amounting to Rs389.8tr. Government securities settlement continued to constitute the largest share in PRISM transaction value.

Published in Dawn, June 26 , 2026