Pakistan’s Digital Payment Revolution: Apps Take Center Stage!
Pakistan’s digital payment landscape is not just growing; it’s exploding! In a landmark revelation from the State Bank of Pakistan’s (SBP) First Quarterly Payment Systems Review of FY26, mobile app-based transactions have hit an astounding 2 billion in Q1 FY26. This monumental figure now accounts for over 80% of all digital payments, showcasing a profound shift in how Pakistanis manage their money.
The Bigger Picture: Retail Payments Surge
The SBP report, released on Tuesday, paints a vibrant picture of overall growth. Retail payment volumes soared to 2.8 billion transactions, marking a healthy 10% quarterly increase. The value of these retail payments also climbed significantly, reaching Rs166 trillion, up 6% from the previous quarter.
What’s driving this impressive expansion? The SBP pinpoints it clearly: “This expansion was primarily driven by the continued rise in mobile app-based banking.”
Digital payment channels are now the undisputed kings, facilitating 2.5 billion transactions – a whopping 90% of total retail payments, up from 87% in the same quarter last year. The value transacted through these digital channels reached a staggering Rs55 trillion, underscoring their integral role in the economy.
Mobile Apps: The Unstoppable Force
Delving deeper, it’s undeniable that mobile apps are the powerhouse of Pakistan’s digital ecosystem. Two billion transactions were carried out through apps offered by banks, branchless banking (BB) providers, and Electronic Money Institutions (EMIs). This colossal volume represents 81% of all digital payments and processed a staggering Rs33.7 trillion in value.
These apps aren’t just for a single purpose; they are versatile hubs for all sorts of financial activity:
- Person-to-Person (P2P) payments: Sending money to friends and family.
- Bill payments: Effortlessly settling utilities and other invoices.
- Account & wallet-based merchant payments: Seamlessly paying at both online platforms and physical retail outlets.
As the SBP notes, this channel’s versatility is a key driver of its widespread adoption.
Beyond Apps: A Diverse Digital Ecosystem
While mobile apps lead the charge, other digital channels are also thriving:
- Internet Banking: Continues to observe steady expansion, with a growing number of users opting for online transactions.
- Payment Cards: The circulation of payment cards reached 61.3 million, with debit cards making up a dominant 90% and credit cards accounting for 4%.
Raast: Powering Instant Payments
The government’s Raast Instant Payment System continues its strong growth momentum. Person-to-Person (P2P) transactions surged to 535 million, a remarkable 31% jump, valuing Rs11.3 trillion during the quarter.
Even more impressively, Raast P2M (Person-to-Merchant) transactions doubled, reaching 4.3 million and amounting to Rs17 billion. Overall, Raast processed a monumental 544 million transactions valued at Rs12.8 trillion, cementing its role as a cornerstone of the instant payment infrastructure.
Comprehensive Reach: From PoS to ATMs
The digital transformation is pervasive. PoS terminals and e-commerce activity are steadily growing, registering 1.5 million daily card-based transactions. Even the widespread network of 20,527 ATMs across the country facilitated 267 million transactions amounting to Rs4.5 trillion.
Traditional channels like bank branches (137 million transactions of Rs110 trillion) and BB agents (129 million transactions amounting to Rs0.9 trillion) still play a significant role, ensuring inclusivity across various segments of the population.
A Future Digitally Enabled
These figures are more than just statistics; they are a testament to Pakistan’s rapid stride towards a modern, efficient financial system. As the SBP aptly concludes, “These developments collectively reflect continued progress toward a more inclusive, efficient, and digitally enabled payments ecosystem in Pakistan.” The future of payments in Pakistan is undoubtedly digital, and it’s happening right now!
Source: Original Article
