The State Bank of Pakistan (SBP) announced on Thursday that digital channels processed 92 percent of the country's 3.7 billion retail payment transactions during the January-March quarter of fiscal year 2025-26. This data, released in the central bank's Quarterly Payment Systems Review, underscores Pakistan's accelerating transition toward electronic payments.
Digital Payments Dominate Retail Transactions
The SBP report revealed that 3.7 billion retail payments totaling PKR 168.8 trillion ($564.5 billion) were conducted through formal banking and payment channels in the quarter. Of these, 92 percent—amounting to 3.4 billion transactions worth Rs68 trillion ($227.4 billion)—were executed via digital channels. The central bank noted that the number of retail transactions increased by 9 percent compared to the previous quarter.
Digital payment channels covered by the report include mobile banking applications, Internet banking portals, automated teller machines (ATMs), point-of-sale (POS) terminals, e-commerce platforms, and interactive voice response (IVR) banking through call centers.
Mobile Apps Lead the Digital Surge
Mobile applications emerged as the dominant platform, processing 2.9 billion transactions valued at Rs42 trillion ($140.5 billion). This accounted for 78 percent of all digital payments. These app-based payments, facilitated by branchless banking providers, commercial banks, and electronic money institutions, included person-to-person transfers, bill payments, and merchant payments via online platforms and physical retail outlets.
Raast Instant Payment System Growth
The Raast instant payment system continued its strong performance, processing 742.1 million transactions worth Rs23.3 trillion ($77.9 billion). Person-to-person transactions via Raast rose 10 percent from the previous quarter to 664 million, valued at Rs18.9 trillion ($63.2 billion). Meanwhile, person-to-merchant transactions increased significantly to 55.9 million, up from 36.3 million in the prior quarter.
Cash-Based Services Still Present
Despite the digital shift, Pakistan's banking network continues to support cash-based services. The country has 20,232 bank branches and 819,397 banking agents. During the quarter, bank branches processed 128 million over-the-counter transactions worth Rs99.5 trillion ($332.8 billion), while banking agents facilitated 155 million transactions amounting to Rs1.1 trillion ($3.7 billion).
Policy Initiatives Driving Digital Adoption
Pakistan has actively promoted digital payments in recent years to enhance financial inclusion, reduce reliance on cash, and document the economy. Key initiatives include the Raast instant payment system and the rapid expansion of mobile banking and branchless financial services. The SBP stated that the latest figures highlight the country's transition toward a more inclusive, efficient, and digitally enabled payments landscape.
