The financial landscape in Pakistan is undergoing a rapid and profound transformation, with the digital payment ecosystem reaching new heights. According to the latest Quarterly Report on Payment Systems released by the State Bank of Pakistan (SBP) on Thursday, approximately 92 percent of all retail transactions were conducted through digital channels during the October to December 2025 quarter. This represents a significant leap from the 88 percent recorded during the same period in the previous year, signaling an aggressive move toward a cashless society. The central bank highlighted that these trends underscore an ongoing transition toward a more inclusive, efficient, and digitally enabled financial environment across the nation.
During the final quarter of 2025, the volume of retail transactions grew by 8 percent compared to the previous quarter. In terms of value, the market saw a 7 percent increase, rising from PKR 157 trillion to a staggering PKR 167 trillion. The SBP attributed this consistent growth primarily to the widespread adoption and increased usage of mobile app-based banking. Out of the total retail activity, digital channel payments accounted for 3.1 billion transactions with a combined value of PKR 64 trillion, reflecting a deep-seated change in how Pakistani consumers and businesses handle their daily finances.
Mobile applications remain the dominant force in this digital evolution. Apps provided by banks, branchless banking players, and Electronic Money Institutions (EMIs) facilitated 2.6 billion transactions. These mobile-based activities represented 83 percent of all digital payments, amounting to PKR 40 trillion. This surge in mobile usage supports a diverse range of financial services, including person-to-person (P2P) transfers, utility bill payments, and merchant transactions conducted through both online platforms and physical retail outlets. Simultaneously, internet banking maintained steady progress, with transaction volumes rising by 11 percent and values increasing by 22 percent.
The Raast Instant Payment System continues to be a cornerstone of the country’s digital infrastructure. During the quarter, Raast processed 645.7 million transactions worth PKR 18.5 trillion. P2P transfers via Raast saw a 13 percent increase, reaching 603 million transactions valued at PKR 15.7 trillion. Furthermore, the Raast Person-to-Merchant (P2M) segment grew to 33.6 million transactions, while the Raast Bulk Service processed over 9 million transactions worth PKR 2.6 trillion for government and corporate entities. This indicates that both the public and private sectors are rapidly integrating instant payment solutions into their high-volume operations.
In terms of physical infrastructure and hardware, the number of payment cards in circulation has risen to 66.7 million. Debit cards dominate this space, making up 87 percent of the total, while credit cards represent only 5 percent. The remaining portion consists of social welfare and prepaid cards. On the ground, Point-of-Sale (PoS) terminals and e-commerce platforms are processing roughly 1.7 million card-based transactions every day. Pakistan’s network of 20,976 ATMs also remained active, facilitating 277 million transactions valued at PKR 4.9 trillion during the quarter.
Despite the digital surge, traditional banking touchpoints still play a vital role in the ecosystem. The country’s 20,143 bank branches and 763,262 banking agents provided essential Over-the-Counter (OTC) services such as cash deposits and fund transfers. Bank branches handled 138 million transactions valued at PKR 102 trillion, while agents managed 135 million transactions totaling PKR 0.9 trillion. On the high-value side, the Real-Time Gross Settlement (RTGS) system, known as PRISM+, settled 1.7 million transactions worth PKR 370 trillion. The majority of this value, approximately 69 percent, was related to the settlement of government securities, followed by fund transfers and ancillary clearing.
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