Retail Transactions Shift Rapidly Toward Digital Channels
Pakistan’s digital payments ecosystem recorded strong growth in the first quarter of FY26, with retail transactions increasingly moving to mobile apps, instant payments, and digital banking platforms, according to the State Bank of Pakistan’s (SBP) first Quarterly Payment Systems Review for FY26.
The central bank reported that retail payment volumes reached 2.8 billion transactions, reflecting a 10 percent increase quarter-on-quarter. The total value of these transactions climbed to PKR 166 trillion, up 6 percent from the previous quarter, driven largely by the expanding use of digital payment channels.
Digital Payments Now Account for 90% of Retail Transactions
Digital channels dominated retail payments during the quarter, accounting for 2.5 billion transactions, or 90 percent of total retail payment volume, compared to 87 percent in the same period last year. In value terms, digital transactions reached PKR 55 trillion, highlighting Pakistan’s accelerating shift away from cash-based payments.
Mobile Apps Lead the Digital Payments Boom
Among digital channels, mobile app–based payments emerged as the clear leader. These platforms processed 2.0 billion transactions, representing 81 percent of all digital payments, with a total value of PKR 33.7 trillion.
Mobile apps offered by banks, branchless banking providers, and electronic money institutions are increasingly used for person-to-person transfers, bill payments, and merchant transactions, both online and at physical retail locations. Internet banking also continued to expand steadily, supported by growing digital awareness and improved access to online financial services.
Raast Continues Strong Expansion
SBP’s Raast Instant Payment System maintained strong growth momentum during the quarter. Person-to-Person (P2P) transactions rose to 535 million, marking a 31 percent increase, with a value of PKR 11.3 trillion.
Meanwhile, Raast Person-to-Merchant (P2M) transactions more than doubled to 4.3 million, amounting to PKR 17.0 billion. Overall, Raast processed 544 million transactions worth PKR 12.8 trillion, reinforcing its position as a cornerstone of Pakistan’s real-time payments infrastructure.
Cards, ATMs, and Branch Networks Still Play Key Role
Despite the rapid rise of digital payments, cards and physical banking channels remain relevant. The number of payment cards in circulation reached 61.3 million, with debit cards accounting for 90 percent and credit cards for 4 percent.
Pakistan’s 20,527 ATMs processed 267 million transactions valued at PKR 4.5 trillion, while bank branches handled 137 million transactions worth PKR 110 trillion. Additionally, branchless banking agents facilitated 129 million transactions totaling PKR 0.9 trillion, mainly through over-the-counter services.
Digital Payments Signal Broader Economic Shift
The SBP noted that these trends reflect a more inclusive, efficient, and digitally enabled payment ecosystem. Continued growth in mobile banking, instant payments, and digital acceptance infrastructure points to rising consumer trust and sustained investment in financial technology.
For Pakistan’s IT and telecom sectors, the surge in digital transactions underscores the critical role of mobile broadband, secure payment platforms, and interoperable financial infrastructure in driving the country’s digital economy.
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