Digital Payments Now Make Up 89% of Retail Transactions in Pakistan

Pakistan’s retail landscape has undergone a significant digital transformation, with nearly 90% of retail payments now processed through digital channels, according to the State Bank of Pakistan’s (SBP) latest Quarterly Payment Systems Review for Q3 FY25.

Digital platforms handled 2,408 million retail transactions during the quarter, a 12% increase from the previous period. These transactions totaled Rs. 164 trillion in value, signaling strong momentum towards a cashless economy.

Mobile apps and digital wallets played a central role in the digital surge, accounting for 1,686 million transactions worth Rs. 27 trillion, a 16% rise in volume and a 22% boost in value compared to the prior quarter.

User adoption also expanded:

• Mobile banking users: 22.6 million (up 7%)
• Branchless banking wallets: 68.5 million (up 6%)
• E-money wallet users: 5.3 million (up 12%)
• Internet banking users: 14.1 million (up 7%)

E-commerce saw explosive growth, with 213 million transactions (up 40%) totaling Rs. 258 billion (up 34%). Notably, digital wallets dominated the space, covering 94% of all online payment value. In contrast, card-based transactions only contributed 6%.

Physical stores are increasingly equipped for digital payments:

• 99 million POS transactions processed by 140,861 merchants totaled Rs. 550 billion.
• QR code-based transactions hit 21.7 million, amounting to Rs. 61 billion in value.

Raast and RTGS Drive High-Value Transfers

SBP’s flagship platforms are also making strides:

• Raast handled 371 million instant payments worth Rs. 8.5 trillion this quarter alone, bringing the total to 1.5 billion transactions valued at Rs. 34 trillion since launch.
• RTGS (Real-Time Gross Settlement System) managed 1.5 million transactions amounting to Rs. 347 trillion, catering primarily to high-value settlements.

The SBP attributed this growth to strategic collaboration between banks, fintech firms, and payment service providers. The central bank reaffirmed its commitment to financial inclusion and building a more efficient digital payment ecosystem.