State Bank of Pakistan has released its Quarterly Payment Systems Review for Q2 FY25, highlighting a remarkable surge in digital transactions across the country. The report underscores Pakistan’s ongoing transition toward a cashless and digitally inclusive economy, driven by rapid adoption of mobile banking, internet banking, and instant payment systems like Raast.
According to the report, retail transactions saw a notable 11% rise in volume, reaching 2,143 million transactions in Q2 FY25. The total value of these transactions also grew by 12%, amounting to a staggering PKR 154 trillion. The significant rise in digital transactions was primarily fueled by an increase in mobile banking app payments, internet banking transactions, and over-the-counter (OTC) transactions at bank branches.
A key takeaway from the report is that digital payment channels now account for 88% of all retail transactions by volume. Mobile banking applications, branchless banking (BB) wallets, and e-money wallets played a pivotal role in this transformation, collectively processing 1,450 million transactions worth PKR 24 trillion. This represents a 12% increase in transaction volume and a 28% rise in transaction value compared to the previous quarter.
The growth in digital payments was accompanied by a steady rise in the number of users leveraging mobile and internet banking. Mobile banking app users surged to 21 million, reflecting a 7% increase. Similarly, e-money and BB wallet users rose to 4.7 million (a 13% increase) and 64.3 million (a 7% increase), respectively. Internet banking users also expanded, reaching 13.3 million, a 7% increase from the previous quarter.
E-commerce and merchant payments through digital platforms also saw a sharp increase. The volume of e-commerce transactions climbed 30% to 152 million, with a total value of PKR 193 billion, reflecting a 32% rise. Among these transactions, 92% (139.5 million) were made through digital wallets and accounts, while the remaining 8% (12.8 million) were processed via card payments. By transaction value, digital wallets accounted for 67%, with cards contributing 33%.
Brick-and-mortar retail transactions also witnessed a boost, with 115,177 Point-of-Sale (POS)-enabled merchants utilizing 151,646 POS terminals. These facilitated 89 million in-store purchases, a 7% rise from the previous quarter, totaling PKR 510 billion in transaction value—a 19% increase. Additionally, kiryana stores and small retailers accepting QR or BB wallet payments processed 22.1 million transactions worth PKR 58 billion, marking a 4% and 9% growth in volume and value, respectively.
SBP’s flagship digital payment systems, Raast and RTGS, continued to accelerate financial inclusion and efficiency. Raast, the country’s instant payment system, processed 296 million transactions amounting to PKR 6.4 trillion in Q2 FY25. Since its inception, Raast has now facilitated a cumulative 1,144 million transactions worth PKR 26 trillion. Meanwhile, large-value transactions settled through the Real-Time Gross Settlement (RTGS) system saw a 19% increase in value, reaching PKR 330 trillion.
Pakistan’s digital payment transformation is being driven by the strategic initiatives of the SBP, as well as the collaborative efforts of banks, fintech firms, and payment service providers. With digital payment channels continuing to gain momentum, the SBP remains committed to enhancing financial inclusion and improving payment efficiency for individuals and businesses.
For the full report, visit: SBP Payment Systems Review Q2 FY25.
