The State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Review for the second quarter of FY25, highlighting the country’s growing digital payment landscape. The review reveals significant growth in digital transactions, showing an upward trend in both volume and value as Pakistan continues its transition towards a more digitally inclusive economy.
According to the review, retail transactions in Q2 FY25 saw an 11 percent increase in volume, reaching 2.14 billion transactions. This surge in activity also led to a 12 percent growth in transaction value, which amounted to a substantial PKR 154 trillion. Mobile banking apps, internet banking, and over-the-counter (OTC) transactions at bank branches were the primary drivers behind this growth, contributing significantly to the overall increase. Notably, digital payment channels now process 88 percent of all retail transactions by volume, with mobile app-based banking playing a central role in this shift.
Digital banking services experienced substantial uptake during this period, underscoring a clear trend toward increasing digital engagement among consumers. Mobile banking app users rose by 7 percent, reaching a total of 21 million users. Meanwhile, users of e-money wallets and branchless banking (BB) wallets grew by 13 percent and 7 percent, respectively, to 4.7 million and 64.3 million. Additionally, internet banking saw a similar growth trajectory, with users increasing to 13.3 million, marking a 7 percent rise.
E-commerce transactions also witnessed remarkable expansion in Q2 FY25. Volume increased by 30 percent, totaling 152 million digital transactions. In terms of value, e-commerce transactions amounted to PKR 193 billion, which represents a 32 percent increase from the previous quarter. The adoption of digital payment methods in this sector continues to accelerate, with 92 percent of e-commerce transactions (139.5 million) being completed through digital wallets and accounts. In contrast, 8 percent of transactions (12.8 million) were processed via cards. These figures highlight the growing preference for mobile-based payments, which are now the dominant method for online shopping in Pakistan.
In-store merchant payments also saw significant improvements. A total of 115,177 Point-of-Sale (POS) enabled merchants, supported by 151,646 POS terminals, facilitated 89 million in-store purchases, generating PKR 510 billion in value—an increase of 7 percent and 19 percent, respectively. This reflects the expanding adoption of digital payment methods in retail outlets, contributing further to the country’s shift towards a cashless economy.
A major contributor to Pakistan’s growing digital payment ecosystem is the SBP’s Raast Instant Payment System. Raast processed 296 million transactions worth PKR 6.4 trillion in Q2 FY25. This brings the total number of Raast transactions to 1.14 billion, with a total value of PKR 26 trillion since its inception. Similarly, the Real-time Gross Settlement (RTGS) System handled large-value transactions worth PKR 330 trillion, marking a 19 percent increase in value compared to the previous quarter. These systems play an essential role in driving the country’s digital transformation, offering fast, secure, and efficient methods for completing financial transactions.
As Pakistan continues to strengthen its digital payment infrastructure, the SBP’s strategic initiatives, alongside collaboration with banks, fintechs, and payment service providers, are setting the foundation for a more inclusive and efficient financial ecosystem. With the growth of mobile and internet banking, e-commerce, and digital payment platforms, the country is steadily advancing towards becoming a fully digital economy. SBP’s ongoing commitment to financial inclusion and innovation will help foster a more accessible financial future for both individuals and businesses in Pakistan.