The State Bank of Pakistan (SBP) has released its first Quarterly Report on Payment Systems for the fiscal year 2025-26, providing a detailed assessment of the country’s evolving payments ecosystem and the key trends shaping digital and retail transactions during the first quarter of the fiscal year. The report highlights steady progress toward a more efficient, inclusive, and technology-driven payments landscape, supported by growing adoption of digital channels across the economy.
According to the SBP, retail payment activity continued to expand during the quarter, with total transaction volumes rising to 2.8 billion, reflecting a 10 percent increase compared to the previous quarter. The overall value of retail payments reached PKR 166 trillion, up 6 percent on a quarterly basis. This growth was largely driven by the sustained increase in mobile app-based banking and digital payment solutions, which are becoming the preferred mode of transactions for individuals and businesses alike.
Digital payment channels accounted for a dominant share of retail payments during the quarter. A total of 2.5 billion transactions were processed through digital channels, representing 90 percent of total retail payment volumes, compared to 87 percent in the same quarter last year. The value of these digital transactions stood at PKR 55 trillion, highlighting the expanding role of electronic payments in everyday financial activity and commerce.
Mobile app-based payments emerged as the most significant contributor to digital transactions. The report shows that 2.0 billion transactions were conducted through mobile applications offered by banks, branchless banking providers, and electronic money institutions. These transactions accounted for 81 percent of all digital payments and amounted to PKR 33.7 trillion in value. Mobile apps were widely used for person-to-person transfers, bill payments, and account- and wallet-based merchant payments across online platforms as well as physical retail outlets.
Internet banking also recorded steady growth during the quarter, with an increasing number of users opting to carry out financial transactions through online channels. At the same time, the number of payment cards in circulation continued to rise, reaching 61.3 million. Debit cards remained the dominant category, accounting for 90 percent of cards in circulation, while credit cards represented around 4 percent, reflecting cautious but gradual growth in credit-based consumer spending.
The Raast Instant Payment System maintained strong momentum and continued to play a central role in Pakistan’s digital payments infrastructure. Person-to-person transactions processed through Raast increased to 535 million during the quarter, marking a 31 percent rise, with a total value of PKR 11.3 trillion. Person-to-merchant transactions through Raast also showed rapid expansion, doubling to 4.3 million transactions with a combined value of PKR 17.0 billion. Overall, Raast processed 544 million transactions during the quarter, amounting to PKR 12.8 trillion.
Card-based payments and e-commerce activity also demonstrated continued growth. On average, 1.5 million card-based transactions were recorded daily at point-of-sale terminals and online platforms. The country’s ATM network, comprising 20,527 machines, facilitated 267 million transactions during the quarter with a total value of PKR 4.5 trillion. Each ATM handled an average of 142 transactions per day, with an average ticket size of PKR 16,800 per transaction.
Despite the rapid expansion of digital channels, physical touchpoints remained an important component of the payments ecosystem. A total of 19,852 bank branches and 756,480 branchless banking agents provided over-the-counter services such as cash deposits, withdrawals, fund transfers, and bill payments. Bank branches processed 137 million transactions worth PKR 110 trillion, while branchless banking agents facilitated 129 million transactions amounting to PKR 0.9 trillion.
The SBP noted that these developments collectively reflect continued progress toward building a resilient and digitally enabled payments system. The growing use of mobile apps, instant payment systems, and digital channels underscores changing consumer behavior and increasing trust in electronic payments. The central bank views these trends as critical to improving financial inclusion, reducing reliance on cash, and supporting broader economic efficiency in Pakistan.
Overall, the first Quarterly Payment Systems Review of FY26 signals that Pakistan’s payments ecosystem is steadily advancing, with technology-led solutions playing a central role in shaping the future of financial transactions across the country.
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