KARACHI: Retail payment volumes rose by 12 per cent year-on-year to 2,408 million transactions in the third quarter of FY25, while the overall transaction value increased by 8pc to Rs164 trillion, according to the State Bank of Pakistan.

In its third Quarterly Payment System Review released on Wednesday, the SBP noted that digital channels accounted for 89pc of all retail transactions, reflecting the ongoing shift towards a more cashless economy.

Mobile app-based platforms — including mobile banking apps, branchless banking (BB) wallets, and e-money wallets — collectively processed 1,686m transactions worth Rs27tr. This marked a 16pc growth in volume and a 22pc rise in value compared to the previous quarter.

The number of users of digital banking services continued to grow steadily. Mobile banking app users reached 22.6 million (up 7pc), BB wallet users increased to 68.5m (up 6pc), and e-money wallet users rose to 5.3m (up 12pc). Internet banking users also climbed to 14.1m, reflecting a 7pc increase.

Digital channels account for 89pc of total payments

E-commerce payments recorded a strong uptick, rising 40pc in volume to 213m transactions and 34pc in value to Rs258 billion. Digital wallets were the dominant mode, accounting for 94pc (199.1m) of transactions by volume, while card-based online payments made up only 6pc (13.5m).

For in-store transactions, 140,861 merchants processed 99m transactions (up 12pc) amounting to Rs550bn (up 8pc) through a network of 179,383 point-of-sale (POS) terminals. Additionally, QR code payments accounted for 21.7m transactions valued at Rs61bn.

The SBP-operated payment systems — Raast and the Real-Time Gross Settlement System (RTGS) — played a critical role in enabling faster digital payments. Raast processed 371m transactions worth Rs8.5tr during the quarter, bringing its cumulative total to over 1.5bn transactions valued at more than Rs34tr since launch. RTGS facilitated 1.5m large-value transactions amounting to Rs347tr during the period.

The central bank said the continued expansion of digital payments was underpinned by its strategic initiatives, as well as coordinated efforts from banks, fintech firms, and payment service providers. The SBP remains committed to enhancing financial inclusion and payment efficiency.

Cash machines

The country has 19,851 automated teller machines (ATMs), which processed 271m transactions worth Rs4.8tr during the quarter. Each ATM handled an average of 152 transactions daily, with an average transaction size of Rs17,500.

Digital wallets and account-based payments dominated e-commerce, comprising 94pc (199.1m) of transaction volume and 74pc (Rs190.4bn) of transaction value.

Published in Dawn, June 26th, 2025