Pakistan is witnessing a transformative shift towards a cashless economy, driven by rapid adoption of digital payment technologies across the country. According to recent figures for fiscal year 2024-25, digital transactions have surged by 38% year-on-year, underscoring the growing reliance of individuals, businesses, and financial institutions on technology-driven financial solutions.
The total value of digital transactions reached an impressive Rs 612 trillion, marking a 12% increase from the previous year. This growth reflects both increased transaction volumes and the deepening integration of digital payments into everyday economic activities. Over 9.1 billion digital transactions were recorded nationwide during this period, highlighting the scale at which Pakistanis are embracing electronic payments.
Retail payments are at the forefront of this transformation. The share of retail payments conducted digitally has risen to 88%, up from 78% last year, signaling a decisive move away from cash-based transactions. This shift is supported by the expansion of digital infrastructure, including the installation of 195,849 point-of-sale (POS) terminals, representing a 56% increase over the previous year.
QR-enabled merchant acceptance has also expanded significantly, with 1.1 million merchants now equipped to process payments using QR codes—double the number recorded in the previous fiscal year. This has made digital payments more accessible for small and medium-sized enterprises, enabling faster, safer, and more convenient transactions for customers.
Branchless banking services are playing a crucial role in promoting financial inclusion across Pakistan. Over 731,000 agents are now facilitating branchless banking services nationwide, extending financial access to underserved communities and remote areas. This network empowers individuals and businesses to participate in the formal economy, bridging gaps in financial accessibility and literacy.
Experts note that the growth in digital payments is more than a technological development; it represents a broader economic and social shift. By connecting citizens, enabling businesses to operate efficiently, and promoting transparency, digital payments are fostering a more inclusive financial ecosystem in Pakistan. The adoption of innovative payment methods, from POS systems to QR codes and mobile wallets, is helping to streamline transactions, reduce the risks associated with cash, and enhance economic productivity.
Looking ahead, Pakistan’s vision for 2025 and beyond emphasizes a digital, inclusive, and empowered economy. Continued investment in digital infrastructure, regulatory support, and public-private collaboration will be key drivers of this transformation, ensuring that digital financial solutions are accessible to all segments of society.
With the rapid pace of adoption and ongoing innovations, Pakistan is well on its way to achieving a cashless economy that is not only efficient and secure but also inclusive and resilient.
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