KARACHI: The State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Review for the second quarter of fiscal year 2026 (October–December 2025), revealing a massive shift toward digital finance. According to the report, digital channels now account for a staggering 92% of all retail transactions in the country.
The Digital Explosion
The report highlights that Pakistanis performed 3.4 billion retail transactions during the quarter, a 7% increase in value compared to the previous quarter, reaching a total of PKR 167 trillion.
The adoption of digital methods is accelerating rapidly, with digital payments reaching 3.1 billion transactions worth PKR 64 trillion. This is a significant jump from 88% digital share recorded during the same period last year.
Mobile Banking Dominates
Mobile app-based payments remain the undisputed leader of the digital landscape.
- Transaction Volume: 2.6 billion transactions.
- Total Value: PKR 40 trillion.
- Market Share: These apps (offered by banks, Branchless Banking players, and EMIs) now account for 83% of all digital payments.
Internet banking also showed robust growth, with transaction volume increasing by 11% and value surging by 22% quarter-on-quarter.
Raast: The Backbone of Instant Payments
The SBP’s Raast Instant Payment System continues to see aggressive adoption across various sectors:
- P2P (Person-to-Person): Processed 603 million transactions worth PKR 15.7 trillion.
- P2M (Person-to-Merchant): Transactions rose to 33.6 million, totaling PKR 167.6 billion.
- Bulk Payments: Government and corporate sectors used Raast for 9 million transactions worth PKR 2.6 trillion, signaling a shift in how large-scale institutional payments are handled.
Cards and Infrastructure
The number of payment cards in Pakistan has reached 66.7 million, with debit cards dominating 87% of the market. While credit cards still represent a small portion (5%), the infrastructure to support card usage is growing:
- POS & E-commerce: Roughly 1.7 million card-based transactions are now processed daily.
- ATMs: A network of 20,976 ATMs facilitated 277 million transactions worth PKR 4.9 trillion.
The Role of Physical Channels
Despite the digital surge, traditional banking still handles the bulk of high-value transactions. Over 20,000 bank branches processed 138 million transactions valued at PKR 102 trillion, while 763,262 banking agents facilitated smaller OTC services like cash withdrawals and bill payments.
The SBP noted that these trends underscore Pakistan’s steady transition toward a more inclusive and efficient “Digitally Enabled” economy.
