Pakistan’s digital payments landscape is undergoing a significant transformation, with 88% of all retail transactions now being processed through digital channels. According to the State Bank of Pakistan’s (SBP) Quarterly Payment Systems Review for Q2-FY25, the growing adoption of mobile banking apps, branchless banking (BB) wallets, and e-money wallets is driving this shift toward a cashless economy. These platforms collectively facilitated an impressive 1.45 billion transactions valued at Rs. 24 trillion—marking a 12% growth in transaction volume and a 28% increase in value compared to previous periods.
This surge in digital payment activity reflects the increasing trust and reliance Pakistanis are placing on mobile-first banking and payment solutions. Mobile banking app users grew by 7% to reach 21 million, while e-money wallet users jumped by 13% to 4.7 million. Similarly, BB wallet users saw a 7% increase, reaching a user base of 64.3 million. Internet banking usage also rose, with a 7% growth bringing the total number of users to 13.3 million.
The e-commerce sector is benefiting significantly from this digital evolution. E-commerce transactions increased by 30% in volume, hitting 152 million, with the total value of these transactions climbing 32% to Rs. 193 billion. The data reveals that 92% of these e-commerce transactions were carried out via digital wallets or accounts, while only 8% were processed through cards. In terms of transaction value, digital wallets accounted for 67% compared to 33% through card payments, highlighting the dominance of wallet-based payments in Pakistan’s online retail environment.
In-store digital transactions are also witnessing robust growth. There are now 115,177 POS-enabled merchants operating across the country, utilizing 151,646 POS terminals to process 89 million purchases worth Rs. 510 billion—a 19% rise in transaction value. Retail and kiryana (neighborhood) stores are increasingly accepting payments via QR codes and BB wallets, processing 22.1 million transactions worth Rs. 58 billion. This represents 4% and 9% growth in volume and value, respectively.
State Bank of Pakistan’s infrastructure continues to play a vital role in facilitating this digital transformation. Raast, the country’s Instant Payment System, processed 296 million transactions worth Rs. 6.4 trillion in Q2-FY25 alone. Since its launch, Raast has processed 1.144 billion transactions valued at Rs. 26 trillion. Meanwhile, the Real-Time Gross Settlement System (RTGS), designed for large-value interbank transfers, settled Rs. 330 trillion worth of transactions—marking a 19% increase from previous figures.
Overall, retail transactions in Pakistan rose by 11% in volume to 2.14 billion and by 12% in value, reaching Rs. 154 trillion. This growth is attributed to the rising popularity of mobile and internet banking, along with over-the-counter (OTC) digital transactions.
Pakistan’s digital economy is being propelled by strategic regulatory support from SBP, combined with the innovative efforts of commercial banks, fintechs, and payment service providers. These collaborative efforts are driving forward financial inclusion and enabling faster, more efficient payment mechanisms for both consumers and businesses.
As digital payments continue to penetrate every layer of the economy, Pakistan is steadily advancing towards a more inclusive, cashless future—unlocking new opportunities for growth and financial empowerment across the country.
