The State Bank of Pakistan has officially unveiled its Quarterly Report on Payment Systems for the second quarter of the fiscal year 2026, covering the period from October to December 2025. This comprehensive document highlights a monumental shift in the national financial landscape, showcasing how formal banking and payment channels are rapidly evolving. The data underscores a significant transition toward a more inclusive and efficient digital economy, with both low-value retail transactions and high-value settlements through the Real-Time Gross Settlement system reflecting robust growth across all major sectors.
A standout revelation from the central bank report is the sheer volume of retail activity, which reached 3.4 billion transactions during the three-month period. Most notably, 92 percent of these transactions were processed through digital channels, marking a substantial increase from the 88 percent recorded during the same timeframe in the previous year. On a quarterly basis, the volume of retail transactions grew by 8 percent, while the total value surged by 7 percent to reach a staggering PKR 167 trillion. These figures represent a clear indication that the Pakistani public is increasingly moving away from traditional cash-based exchanges in favor of electronic alternatives.
Within the digital sphere, mobile application-based payments have firmly established themselves as the primary driver of growth. The report indicates that 3.1 billion digital payments worth PKR 64 trillion were completed, with mobile apps accounting for 83 percent of this volume. These platforms, managed by banks, branchless banking providers, and Electronic Money Institutions, facilitated 2.6 billion transactions valued at PKR 40 trillion. This surge supports a diverse array of financial activities, ranging from simple person-to-person transfers and utility bill settlements to sophisticated merchant payments at both e-commerce platforms and physical retail storefronts.
The Raast Instant Payment System continues to serve as the backbone of this digital revolution, maintaining its strong momentum with 645.7 million transactions worth PKR 18.5 trillion during the quarter. Person-to-Person transfers via Raast saw a 13 percent increase, totaling 603 million transactions. Meanwhile, the Raast Person-to-Merchant segment grew to 33.6 million transactions, and the Raast Bulk Service was utilized by government and corporate entities for over 9 million transactions worth PKR 2.6 trillion. This widespread adoption across different user segments proves the platform’s versatility in handling both individual and institutional financial needs.
Regarding payment infrastructure, the total number of payment cards in circulation has climbed to 66.7 million. Debit cards remain the dominant instrument, making up 87 percent of the total, while credit cards represent only 5 percent of the market share. The remaining portion consists of specialized social welfare and prepaid cards. Despite the digital push, physical infrastructure remains vital; a network of nearly 21,000 ATMs facilitated 277 million transactions worth PKR 4.9 trillion. Furthermore, over 20,000 bank branches and a massive network of 763,262 banking agents provided essential over-the-counter services, ensuring that even those outside the fully digital loop remain connected to the formal financial system.
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