KARACHI:
The State Bank of Pakistan (SBP), in its Quarterly Payment Systems Review for the first quarter (July-September) of the financial year 2024-25, has highlighted important steps in Pakistan’s journey towards a cashless and digitally inclusive economy.
The report, released on Friday, cited strong growth in the adoption of digital payments, infrastructure development and a gradual shift away from cash and paper-based media.
Retail payments in Q1 2025 grew by 8% in volume to 1,951 million with a value of Rs 136 trillion. Payments through digital channels registered a quarter-on-quarter growth of 9% in both volume and value, reaching Rs 1,699 million and Rs 36 trillion.
“Digital channels now handle 87% of retail payments by volume, showing the public’s growing trust in digital payments,” the report said.
Mobile banking apps provided by banks, micro finance banks (MFBs), branchless banking and electronic money institutions (EMIs) played a key role in the growth, with 1,301 million transactions worth Rs 19 trillion made through these apps during quarter, up 11% in volume and 14% in value.
The collective number of mobile banking app users rose 4% to 96.5 million from 93 million in the previous quarter.
According to the report, e-commerce is also emerging as an integral part of Pakistan’s digital payments, with a 29% increase in online e-commerce payments.
Of the 118 million online e-commerce payments in the quarter under review, 91% were made via digital wallets, indicating a shift away from traditional card-based systems.
Complementing this growth, the number of Point-of-Sale (POS) terminals increased to 132,224, which enabled 83 million transactions worth Rs 429 billion.
Additionally, the ATM network grew to 19,170 units and facilitated 243 million transactions worth Rs 3.9 trillion, maintaining its key role as a cash withdrawal channel.
The State Bank said efforts to include underserved segments gained further momentum, where branchless banking agents played a critical role in expanding financial services, especially in rural and remote areas.
Over 693,178 agents processed 28 million bill payments/mobile top-ups and 75 million cash deposit and withdrawal transactions during the quarter. Retailers accepting digital payments grew by 16%, driven by branchless banking initiatives that enable payments via mobile wallets, QR codes and other digital tools.
“These developments highlight the importance of alternative financial channels for bridging economic disparities between regions,” he said.
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