Pakistan’s digital payment ecosystem maintained its rapid growth trajectory during the first quarter of FY26, with mobile app-based transactions reaching a record 2 billion, accounting for more than 80 percent of all digital payments. The figures were released in the State Bank of Pakistan’s (SBP) First Quarterly Payment Systems Review of FY26, published on Tuesday.
According to the central bank, overall retail payment volumes rose to 2.8 billion transactions during the quarter, reflecting a 10 percent increase compared to the previous quarter. In value terms, retail payments climbed to Rs166 trillion, marking a 6 percent quarter-on-quarter growth. The SBP attributed this expansion primarily to the sustained rise in mobile app-based banking and increasing consumer preference for digital channels.
Digital payment channels continued to dominate the retail payments landscape, accounting for 2.5 billion transactions, or nearly 90 percent of total retail payment volumes. This represented a notable increase from 87 percent recorded in the same quarter last year. The value of transactions conducted through digital channels reached Rs55 trillion, underscoring the deepening penetration of digital payments across the economy.
Mobile app-based payments remained the backbone of this growth. Transactions conducted through applications offered by commercial banks, branchless banking providers, and electronic money institutions totaled two billion during the quarter. These payments represented 81 percent of all digital transactions and carried a cumulative value of Rs33.7 trillion. The SBP noted that mobile apps are increasingly being used for a wide range of purposes, including person-to-person transfers, bill payments, and merchant payments conducted through both online platforms and physical retail outlets.
Internet banking also recorded steady growth, supported by a rising base of digitally active users. At the same time, the number of payment cards in circulation increased to 61.3 million, with debit cards accounting for around 90 percent of the total, while credit cards represented approximately 4 percent, reflecting cautious but gradual growth in credit-based payments.
The government-backed Raast Instant Payment System sustained strong momentum during the quarter. Person-to-Person (P2P) transactions through Raast increased to 535 million, registering a robust 31 percent growth, with a total transaction value of Rs11.3 trillion. Raast Person-to-Merchant (P2M) transactions also showed rapid expansion, doubling to 4.3 million transactions worth Rs17 billion. Overall, Raast processed 544 million transactions valued at Rs12.8 trillion during the quarter, highlighting its growing role in Pakistan’s digital payments infrastructure.
Card-based payments and e-commerce activity continued to expand as well. Point-of-sale terminals and online platforms recorded an average of 1.5 million daily card transactions. Nationwide, a network of 20,527 ATMs facilitated 267 million transactions amounting to Rs4.5 trillion.
In parallel, traditional banking channels remained significant in value terms. Bank branches processed 137 million transactions valued at Rs110 trillion, while branchless banking agents handled 129 million transactions worth Rs0.9 trillion.
“These developments collectively reflect continued progress toward a more inclusive, efficient, and digitally enabled payments ecosystem in Pakistan,” the SBP said, noting that sustained investment in digital infrastructure and consumer adoption is reshaping the country’s financial landscape.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.