Digital payment platforms have solidified their presence within Pakistan’s financial landscape, with the State Bank of Pakistan (SBP) confirming that an overwhelming 92 percent of all retail transactions during the second quarter of fiscal year 2026 were conducted through electronic means. This marks a significant milestone in the country’s ongoing transition towards a cash-lite economy, reflecting changing consumer preferences and business practices.
The SBP published its comprehensive quarterly review of payment systems on Thursday, covering the period from October to December 2025. The report reveals that Pakistan witnessed a total of 3.4 billion retail transactions over these three months, with digital channels facilitating 3.1 billion of these payments. This represents a notable increase from the same quarter last year, when digital transactions accounted for 88 percent of retail payments, underscoring a steady and accelerating shift towards electronic payment methods.
In addition to the rising share of digital transactions, the overall volume and value of retail payments also experienced growth compared to the previous quarter. The total number of transactions climbed by eight percent, while the aggregate value of these payments rose by seven percent, reaching an impressive Rs167 trillion. Digital payments alone contributed Rs64 trillion to this figure, highlighting the growing dependence on digital platforms for everyday financial activities across Pakistan’s economy.
Mobile app-based payments emerged as the primary engine behind this surge, with banking apps, branchless banking services, and electronic money institutions collectively processing 2.6 billion transactions during the quarter. These app-driven payments accounted for 83 percent of the total digital transaction volume and represented a combined value of Rs40 trillion. The convenience and accessibility of mobile apps have made them the preferred choice for a wide range of transactions, including person-to-person transfers, utility bill settlements, and merchant payments conducted both online and at physical retail outlets.
Internet banking also demonstrated strong performance, with transaction volumes increasing by 11 percent and the total value of transactions rising by 22 percent during the quarter. This growth reflects a broader acceptance of digital banking services among consumers and businesses alike, as they seek efficient and secure alternatives to traditional payment methods.
Another key highlight of the report is the continued expansion of Raast, Pakistan’s instant payment system designed to facilitate real-time fund transfers. Raast processed an impressive 645.7 million transactions valued at Rs18.5 trillion in the quarter under review. Person-to-person transfers remained the dominant category, growing by 13 percent to reach 603 million transactions with a total value of Rs15.7 trillion. The system’s merchant payment segment also saw rapid growth, with Raast P2M (person-to-merchant) transactions hitting 33.6 million and amounting to Rs167.6 billion. Additionally, the Raast Bulk Service supported over nine million transactions worth Rs2.6 trillion, catering to government agencies and corporate clients.
Card payments at point-of-sale (POS) terminals and through e-commerce platforms continued their upward trajectory, with approximately 1.7 million card transactions processed daily. This steady increase highlights the growing consumer confidence in using debit and credit cards for everyday purchases, both in physical stores and online marketplaces.
Despite the rapid digital transformation, traditional banking infrastructure remains an integral part of Pakistan’s payment ecosystem. The country’s extensive network of 20,976 ATMs handled 277 million transactions valued at Rs4.9 trillion during the quarter. Moreover, over-the-counter services continued to be widely used, facilitated through 20,143 bank branches and a vast network of 763,262 banking agents. These channels provide essential services such as cash withdrawals, deposits, fund transfers, and bill payments, ensuring financial inclusion for segments of the population less connected to digital platforms.
Overall, the SBP’s latest report paints a clear picture of Pakistan’s evolving payment landscape, where digital solutions are increasingly becoming the norm. This shift not only enhances convenience and security for users but also supports the country’s broader goals of financial inclusion and economic modernization.
