Retail payment activity in Pakistan reached 2.8 billion transactions in the first quarter of fiscal year 2025–26, with digital channels now accounting for 90 percent of all transaction volumes, reflecting a rapid shift toward mobile and app-based banking, according to the State Bank of Pakistan’s (SBP) First Quarterly Payment Systems Review of FY26.
The report shows that the total value of retail payments during the quarter climbed to Rs166 trillion, representing a 6 percent increase from the previous quarter, while transaction volumes rose 10 percent on a quarterly basis. Growth in activity was primarily driven by the widespread use of mobile banking applications provided by banks, branchless banking (BB) providers, and electronic money institutions (EMIs).
Digital payment channels processed 2.5 billion transactions during the quarter, up from 87 percent in the same period last year. The total value of transactions routed through digital platforms reached Rs55 trillion, highlighting the expanding role of digital services in daily financial activity. Mobile app-based payments emerged as the dominant channel, handling 2 billion transactions valued at Rs33.7 trillion. These payments encompassed person-to-person transfers, bill payments, and merchant transactions across both online and physical retail outlets, accounting for 81 percent of all digital transactions.
The Raast instant payment system continued its strong growth trajectory. Person-to-person (P2P) transactions increased 31 percent to 535 million, valued at Rs11.3 trillion, while person-to-merchant (P2M) transactions doubled to 4.3 million, totaling Rs17 billion. Overall, Raast processed 544 million transactions worth Rs12.8 trillion during the quarter.
Internet banking also recorded steady growth, and the number of payment cards in circulation reached 61.3 million, with debit cards representing 90 percent and credit cards comprising approximately 4 percent of the total. Card-based payments at point-of-sale terminals and through e-commerce platforms averaged 1.5 million transactions per day. Meanwhile, the country’s network of 20,527 ATMs facilitated 267 million transactions worth Rs4.5 trillion, averaging 142 transactions daily per ATM, with an average transaction value of Rs16,800.
Despite the rapid growth of digital channels, physical banking services remained active. Bank branches processed 137 million transactions valued at Rs110 trillion, while 756,480 branchless banking agents completed 129 million transactions worth Rs0.9 trillion through over-the-counter services.
The data highlights a structural transformation in Pakistan’s payment ecosystem, with digital platforms increasingly driving transaction volumes, while traditional channels continue to support high-value and cash-based payments. The findings underscore the central role of mobile and app-based banking in expanding financial inclusion and modernizing the country’s retail payment infrastructure.
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