The State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Review for Q1 FY25, showcasing notable progress in Pakistan’s shift towards a cashless and digitally inclusive economy. The review covers the period from July to September 2024 and highlights significant growth in digital payment adoption, infrastructure improvements, and a gradual transition away from cash-based systems.
During Q1 FY25, retail payments in Pakistan grew by 8% in volume, totaling 1,951 million transactions with a value of Rs. 136 trillion. Digital payment methods saw an impressive 9% quarterly growth in both volume and value, reaching 1,699 million transactions worth Rs. 36 trillion. Digital channels now account for 87% of retail payments by volume, underscoring the increasing trust in digital payment solutions.
Mobile banking apps have been a major contributor to this growth, facilitating 1,301 million transactions worth Rs. 19 trillion during the quarter, marking an 11% increase in volume and a 14% rise in value. The number of mobile banking app users also grew by 4%, reaching 96.5 million, up from 93 million in the previous quarter.
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E-commerce is emerging as a key area of growth, with online payments increasing by 29%. A notable 91% of the 118 million online payments during the quarter were made through digital wallets, indicating a shift away from traditional card systems. The growth in digital payment acceptance is also reflected in the expansion of Point-of-Sale (POS) terminals, which reached 132,224, enabling 83 million transactions worth Rs. 429 billion. Additionally, the ATM network grew to 19,170 units, facilitating 243 million transactions valued at Rs. 3.9 trillion, continuing to serve as a primary cash withdrawal channel.
Branchless banking agents are playing a crucial role in expanding financial access to underserved segments, particularly in rural and remote areas. Over 693,178 agents processed 28 million bill payments and mobile top-ups, alongside 75 million cash deposit and withdrawal transactions during the quarter. Retail merchants accepting digital payments saw a 16% increase, driven by initiatives enabling payments through mobile wallets, QR codes, and other digital tools.
The success of the Raast instant payment system also stands out, with 197 million transactions processed, amounting to Rs. 4.7 trillion. This system has further improved the efficiency of instant payments for both individuals and businesses.
SBP’s report highlights the continued growth of Pakistan’s payment ecosystem, driven by collaborative efforts from banks, fintechs, payment service providers, and regulators. These initiatives are fostering innovation, accessibility, and greater financial inclusion across the country.
