Pakistan’s payment ecosystem recorded substantial growth during fiscal year 2025-26, with digital channels becoming the dominant mode for retail transactions across the country. According to the State Bank of Pakistan’s Annual Report on Payment Systems, formal banking channels processed 14.3 billion retail payment transactions during FY26, carrying a combined value of Rs673 trillion. The overall transaction volume increased by 58% compared with the previous fiscal year, while the total value of payments rose by 10%, highlighting the continued expansion of electronic and technology-enabled financial services in Pakistan.
Digital channels accounted for most of this growth, processing 13.2 billion transactions during FY26. This represented a 65% increase from the previous year and lifted the share of digital transactions to 92% of total retail payment activity, compared with 88% in FY25. The increase indicates a continued shift away from traditional transaction methods toward mobile applications, internet banking, electronic payment channels and other technology-based services. The growing use of digital payments is also strengthening the role of financial technology within Pakistan’s broader banking and payments infrastructure.
Mobile phone-based payment solutions remained the largest contributor to digital transaction growth during the year. These channels processed more than 11.1 billion transactions in FY26, recording a 79% year-on-year increase. The rapid expansion reflects the growing reliance on smartphones and mobile financial services for everyday payments and transfers. Internet banking also continued to expand, although at a slower pace, with banking portals processing around 0.3 billion transactions during the fiscal year, representing 15% growth compared with the previous year. Together, these channels demonstrate how digital access is becoming increasingly integrated into routine financial activity.
Pakistan’s physical digital payment infrastructure also expanded during FY26 as banks and payment service providers continued to increase the availability of point-of-sale facilities. The POS network grew to 337,791 terminals operating across 295,367 merchant locations. These terminals processed nearly 1.5 million card payments each day during the fiscal year, compared with approximately 1.0 million daily payments in the previous year. The expansion of the POS network provides merchants with greater capacity to accept electronic payments while supporting wider adoption of card-based transactions in retail markets.
E-commerce payments also continued to demonstrate a strong preference for account-based digital transactions. The SBP reported that account-based online payments represented 96% of total e-commerce transactions conducted through banking channels. This high proportion reflects the increasing use of bank-linked digital payment methods for online purchases and services. As consumers become more comfortable with online financial transactions, account-based payment options are becoming an important part of Pakistan’s expanding digital commerce environment.
The rise in digital transactions was accompanied by significant growth in the number of users accessing financial services through mobile applications. Branchless banking mobile app users increased to 99.1 million during FY26, while the number of users of banks’ mobile applications reached 30.4 million. The figures point to a widening user base for smartphone-based financial services and indicate that mobile applications are playing an increasingly important role in connecting customers with banking and payment services. This expansion also provides financial institutions with a broader digital channel for delivering payments and other financial services.
The country’s underlying payment infrastructure also underwent a major technological development with the launch of PRISM+ in August 2025. The upgraded real-time gross settlement platform introduced the ISO 20022 standard, supporting improvements in the efficiency, transparency and security of payment processing across both retail and large-value payment segments. The transition represents an important step in modernising Pakistan’s payment infrastructure and aligning domestic systems with internationally recognised standards for financial messaging and payment processing.
With the introduction of PRISM+, Pakistan now has both its wholesale payment infrastructure and its retail Instant Payment System operating on the ISO 20022 standard. The common standard is designed to support more structured and consistent payment information, while creating a stronger technological foundation for interoperability and improved payment processing. The development also reflects the broader transformation taking place across the country’s financial infrastructure as banks, payment providers and regulators continue to expand technology-based services.
The State Bank of Pakistan said it remains focused on developing payment systems that are secure, efficient and inclusive while strengthening the country’s wider financial infrastructure. The central bank is also seeking to keep the payment ecosystem aligned with technological developments and international practices while maintaining public trust, resilience and stability. The latest figures show that digital payments have moved beyond being an emerging alternative and have become the principal channel for retail payment activity in Pakistan, with mobile services, banking applications, e-commerce payments and modern payment infrastructure collectively supporting the country’s continuing shift toward digital finance.
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