Pakistan central bank says 92 percent of retail payments made digitally in Jan-March quarter

Digital channels accounted for 92 percent of Pakistan’s 3.7 billion retail payment transactions in the January-March quarter, the State Bank of Pakistan (SBP) said on Thursday, highlighting the country’s continued shift toward electronic payments. The figures were released in the central bank’s Quarterly Payment Systems Review for the third quarter of fiscal year 2025-26, covering transactions conducted through formal banking and payment channels. Pakistan has been promoting digital payments in recent years to improve financial inclusion, reduce cash-based transactions and document the economy, with initiatives including the Raast instant payment system and the rapid expansion of mobile banking and branchless financial services. “According to the report, 3.7 billion retail payments amounting to PKR 168.8 trillion [$564.5 billion] were performed through formal banking and payment channels during the quarter,” the SBP said. “Out of these payments, 92 percent were conducted through digital payment channels.” The central bank said the digital channels included mobile banking applications, Internet banking portals, automated teller machines, point-of-sale terminals, e-commerce platforms and interactive voice response banking through call centers. “The number of retail transactions has witnessed an increase of 9 percent from the previous quarter,” it added. The statement said digital payment channels processed 3.4 billion transactions worth Rs68 trillion ($227.4 billion) during the quarter, with mobile applications remaining the dominant platform. The SBP said app-based payments carried out through branchless banking providers, commercial banks and electronic money institutions reached 2.9 billion transactions valued at Rs42 trillion ($140.5 billion), accounting for 78 percent of all digital payments. The transactions included person-to-person transfers, bill payments and merchant payments through online platforms and physical retail outlets. The Raast instant payment system maintained its growth momentum by processing 742.1 million transactions worth Rs23.3 trillion ($77.9 billion). Of these, person-to-person transactions rose 10 percent from the previous quarter to 664 million, valued at Rs18.9 trillion ($63.2 billion), while person-to-merchant transactions increased to 55.9 million from 36.3 million. The central bank said Pakistan’s banking network also continued to support cash-based services through 20,232 bank branches and 819,397 banking agents Bank branches processed 128 million over-the-counter transactions worth Rs99.5 trillion ($332.8 billion), while banking agents facilitated 155 million transactions amounting to Rs1.1 trillion ($3.7 billion). The SBP said the latest figures underscored Pakistan’s transition toward a more inclusive, efficient and digitally enabled payments landscape.