Islamabad, March 28, 2025 – The State Bank of Pakistan (SBP) has announced a historic achievement in the country’s financial sector, as retail payments surpassed the 2-billion mark for the first time in a single quarter. According to the SBP’s Payment Systems Review for the second quarter (October-December 2024) of FY25, a total of 2.143 billion retail transactions were processed, marking a significant 11% increase compared to the previous quarter. The value of these transactions surged to a remarkable PKR 154 trillion, reflecting a 12% growth from the last quarter.
The SBP attributes this impressive growth primarily to the expansion of digital payment channels. Over the years, Pakistan has witnessed a shift toward mobile banking apps and internet banking portals, and this trend has accelerated significantly. Historically, the quarterly growth rate of retail payments has hovered around 5%, but this quarter’s figures reveal an exceptional 12% increase in transaction value, underscoring the rise of mobile and online banking. Digital payment channels continue to lead the charge in retail payments, processing 1.88 billion transactions, which accounted for 88% of the total retail payment volume. In terms of value, digital transactions amounted to PKR 45 trillion, making up 29% of total retail payment value. Over-the-Counter (OTC) payments, in contrast, contributed 263 million transactions (12% by volume) but represented a much larger share of total transaction value, with OTC transactions reaching PKR 109 trillion (71%).
Mobile banking apps have been particularly influential in driving this growth. With 1.45 billion transactions during the quarter, mobile apps accounted for 77% of all digital payments by volume and 53% by value. The total value of mobile banking transactions reached PKR 24 trillion, reflecting a 13% increase in volume and a 28% rise in value compared to the previous quarter. Meanwhile, internet banking also gained significant traction. The number of internet banking users grew to 13.3 million, marking a 7% increase from the previous quarter. These users conducted 69 million transactions, valued at PKR 9.7 trillion. Despite representing just 4% of total digital transactions by volume, internet banking accounted for 22% by value, illustrating a strong preference for high-value transactions among businesses using online banking portals.
The growth of payment cards in Pakistan further underscores the shift toward digital finance. A total of 56.4 million payment cards were in circulation, with debit cards making up 88% of the total. These cards were used for 263 million ATM transactions, 99 million Point-of-Sale (POS) transactions, and 28 million e-commerce payments during the quarter. Pakistan also saw an increase in the number of ATMs, which now total 19,519, processing 259 million withdrawals worth PKR 4.3 trillion. With an average of 144 transactions per day per ATM, the country’s ATM infrastructure continues to play a pivotal role in facilitating cash withdrawals.
The e-commerce sector has shown exceptional growth, with 152 million online transactions conducted in the second quarter of FY25. This represents a 30% increase in transaction volume and a 32% rise in value, reaching PKR 192 billion. Digital wallets and bank accounts were used for 92% of e-commerce transactions, highlighting the growing preference for digital payment methods over traditional card-based transactions. Retail merchants are increasingly adopting digital payment solutions, including QR code-based systems, as alternatives to cash. A total of 22 million transactions were processed by small and medium-sized retail businesses, including kiryana store operators, worth PKR 58 billion. This marked a 4% growth in volume and a 9% increase in value from the previous quarter.
The SBP’s Raast Instant Payment System continues to gain momentum, with significant growth in Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions. P2P transactions surged by 50%, reaching 294 million transactions with a total value of PKR 6.1 trillion. In addition, over 700,000 merchants are now using the Raast P2M service, which processed PKR 2.9 billion worth of transactions. The SBP is optimistic about the continued growth of Pakistan’s digital payment ecosystem. With mobile banking, e-commerce, and systems like Raast contributing to the country’s digital transformation, Pakistan is on track to achieve greater financial inclusion. As the government continues to modernize the payment landscape, the SBP remains committed to ensuring that digital payment solutions are secure, efficient, and accessible to all citizens, paving the way for further economic growth in the future.