• Over 2bn payments made, value hits Rs154tr
• Digital channels process 88pc of all transactions
• Country’s 19,519 ATMs facilitate 259m transactions worth Rs4.3tr

KARACHI: The number of retail payments surpassed two billion in a quarter for the first time, reaching 2.143 billion, an 11 per cent increase in volume from the previous quarter, according to the State Bank of Pakistan’s (SBP) Second Quarterly Payment System Review for FY25.

The total value of these trans-actions grew by 12pc to Rs154 trillion during the quarter under review (October-December).

The growth in transaction value was primarily driven by mobile banking apps, internet banking and over-the-counter (OTC) transactions at bank branches, the report said.

“Digital channels processed 1.88bn transactions (88pc of all retail payments), whereas OTC channels processed 263m transactions, accounting for the remaining 12pc share in retail payments,” the report said.

“In comparison, Rs45tr or 29pc of the retail payments by value were made through digital channels, while Rs109tr (71pc) through OTC channels (banks branches and branchless banking agents),” it added.

Mobile banking, Raast drive growth

Mobile banking apps continued to lead the shift towards cashless transactions, processing 1.45bn payments worth Rs24tr during the quarter, an increase of 13pc in volume and 28pc in transaction value.

According to the SBP report, mobile banking now accounts for 77pc of digital transactions by volume and 53pc by value, reinforcing its role as the primary driver of digital payments.

Meanwhile, Raast, an instant payment system, witnessed remarkable adoption, with person-to-person (P2P) transactions soaring to 294m, reflecting a 50pc increase in volume, while the total value reached Rs6.1tr, growing 32pc from the previous quarter.

ATMs, e-commerce payments

The country’s 19,519 ATMs facilitated 259m transactions worth Rs4.3tr, with an average transaction size of Rs16,400 and 144 transactions per ATM per day.

E-commerce payments also recorded significant growth, with 152 million online transactions, up 30pc in volume, and a total value of Rs192bn, marking a 32pc increase from the previous quarter.

“The large-value transactions via RTGS (Real-Time Gross Settlement System) settled transactions worth of Rs330tr, registering a 19pc increase in value,” the SBP said.

“Pakistan’s transition towards a digital economy is being driven by State Bank of Pakistan’s strategic initiatives and the collaborative efforts of banks, fintechs, and payment service providers,” it added.

“As digital payments continue to grow, State Bank of Pakistan remains committed to fostering financial inclusion and enhancing payment efficiency for individuals and businesses alike.”

Published in Dawn, March 29th, 2025