Pakistan’s digital payment landscape continues to expand at a rapid pace, with mobile app-based transactions reaching 2 billion in the first quarter of FY26, according to the State Bank of Pakistan’s (SBP) First Quarterly Payment Systems Review of FY26, released on Tuesday. This surge in mobile banking contributed to over 80% of all digital payments, highlighting the increasing reliance of individuals and businesses on app-based financial services. Retail payment volumes in Pakistan rose to 2.8 billion transactions during the quarter, reflecting a 10% increase over the previous quarter, while the total value of retail payments reached Rs166 trillion, up 6%. SBP attributed this growth primarily to the continued adoption of mobile app-based banking, which enables secure, fast, and convenient transactions across the country.
Digital payment channels collectively recorded 2.5 billion transactions in Q1 FY26, representing 90% of total retail payments compared to 87% in the same quarter last year. The value of transactions through digital channels stood at Rs55 trillion, signaling strong penetration of digital finance in Pakistan’s economy. Mobile app-based payments dominated the digital ecosystem, with two billion transactions conducted through apps provided by banks, branchless banking (BB) providers, and electronic money institutions (EMIs). These transactions, valued at Rs33.7 trillion, accounted for 81% of all digital payments and were used for a range of activities, including person-to-person transfers, bill payments, and merchant payments at online and offline retail outlets.
The Raast Instant Payment System continues to play a pivotal role in promoting digital financial inclusion in Pakistan. During Q1 FY26, Person-to-Person transactions on Raast rose to 535 million, marking a 31% increase, with a total value of Rs11.3 trillion. Meanwhile, Raast Person-to-Merchant transactions doubled to 4.3 million, valued at Rs17 billion. Overall, Raast processed 544 million transactions, amounting to Rs12.8 trillion, demonstrating strong adoption among individuals and businesses. In addition, card-based transactions at point-of-sale terminals and e-commerce platforms maintained upward momentum, recording 1.5 million daily transactions. The country’s network of 20,527 ATMs facilitated 267 million transactions totaling Rs4.5 trillion, while bank branches processed 137 million transactions worth Rs110 trillion. BB agents completed 129 million transactions valued at Rs0.9 trillion, reflecting the expanding reach of branchless banking services across urban and rural areas.
Internet banking also continues to see steady growth, supported by rising card usage, with 61.3 million payment cards in circulation, including 90% debit cards and 4% credit cards. These developments illustrate a coordinated shift toward a more inclusive, efficient, and digitally enabled payments ecosystem in Pakistan. The SBP report highlights that mobile banking, Raast, card payments, and branchless banking together are driving greater convenience, security, and transparency, while supporting financial inclusion, e-commerce expansion, and the overall growth of digital finance in the country. Analysts note that continued investment in digital infrastructure, regulatory support, and public awareness will be essential to maintain this trajectory and ensure Pakistan’s payments ecosystem remains competitive and accessible to all citizens.
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