Pakistan Digital Payments Hit 92% of Retail Transactions

Pakistan’s move toward a more digital financial system gained fresh momentum as the State Bank of Pakistan reported that 92 percent of retail payment transactions were carried out through digital channels during the January–March quarter of fiscal year 2025-26. The figures, released on Friday, show how mobile apps, internet banking and instant payment systems are now reshaping everyday financial activity across the country.

According to the latest Payment Systems Review, Pakistan processed 3.7 billion retail transactions during the quarter with a combined value of Rs168.8 trillion. Of that activity, 3.4 billion transactions worth Rs68 trillion were completed through electronic channels, underlining the rapid shift away from traditional over-the-counter banking for routine payments.

Mobile banking applications remained the dominant force in this transformation. The review showed that app-based transactions reached 2.9 billion during the period, accounting for 78 percent of all digital payment volumes. This suggests that consumers are increasingly using phones for transfers, bill payments, merchant purchases and wallet-based financial activity.

The State Bank said the growth reflects a payment ecosystem that is becoming faster, more efficient and more technology-driven. It also noted that internet banking continued to expand in both volume and value, while the broader network of banks, digital platforms and branchless banking agents kept supporting access to financial services across urban and rural markets.

Raast, Pakistan’s instant payment platform, remained a major part of the digital expansion. The system processed 742 million transactions worth Rs23.3 trillion during the quarter, including 664 million person-to-person transfers and 55.9 million person-to-merchant payments. The data indicates that Raast is no longer limited to personal transfers and is increasingly being used by businesses and retailers.

The review also showed that Pakistan’s physical banking infrastructure continues to play a large role. Banking services were supported through 20,232 bank branches and 819,000 branchless banking agents, while conventional branches processed 128 million transactions worth Rs99.5 trillion during the quarter.

Pakistan has been trying for years to reduce dependence on cash, expand financial inclusion and bring more economic activity into documented channels. Digital wallets, mobile banking, Raast payments and online merchant systems have become central to that policy direction, especially as consumers and small businesses increasingly seek faster and lower-cost payment options.

The economic impact could be significant if the trend continues. A stronger digital payments system can improve transparency, reduce transaction delays, support e-commerce, widen the tax base and make financial services more accessible for people who previously relied mainly on cash or informal channels.

The next challenge for regulators and banks will be to maintain public confidence as digital usage grows. Cybersecurity, fraud prevention, service reliability, merchant adoption and consumer awareness will determine whether Pakistan can turn rising digital payment volumes into a safer and more inclusive financial ecosystem.