Digital Payments: SBP says 92% of Pakistan’s retail transactions now take place online

Central bank reports strong growth in mobile banking, digital wallets and Raast as Pakistan accelerates its shift towards a cashless economy

Digital Payments accounted for 92% of Pakistan’s retail transactions during the third quarter of fiscal year 2025-26, according to the latest quarterly payment systems review released by the State Bank of Pakistan.

The central bank reported that Pakistan’s banking system processed 3.7 billion retail transactions worth Rs168.8 trillion during the quarter. Digital channels handled 92% of those transactions, marking a 9% increase compared with the same period last year.

Consumers continued to adopt mobile and online banking services at a rapid pace. Mobile banking apps, internet banking platforms, automated teller machines (ATMs), point-of-sale (POS) terminals and e-commerce platforms processed a combined 3.4 billion transactions during the reporting period.

Digital wallets also strengthened their role in Pakistan’s financial system. They facilitated transactions worth Rs68 trillion during the quarter, reflecting growing consumer confidence in electronic payment services.

The SBP said branchless banking services, electronic money institutions (EMIs) and mobile applications processed 2.9 billion transactions. Their combined transaction value rose 19% year-on-year to Rs42 trillion, while transaction volume increased by 5%.

Pakistan’s instant payment system, Raast, continued to record strong growth. It processed 742.1 million transactions valued at Rs23.3 trillion during the quarter.

Person-to-person (P2P) transfers through Raast increased by 10%, reaching 664 million transactions. Person-to-merchant (P2M) payments recorded even faster growth. They climbed from 36.3 million to 55.9 million transactions, indicating wider acceptance of digital payments among businesses.

Traditional banking services also remained important despite the rapid growth of digital channels. More than 20,232 bank branches and over 8.1 million banking agents continued to provide financial services across the country.

Bank branches processed 128 million over-the-counter transactions worth Rs99.5 trillion. Banking agents handled another 155 million transactions with a combined value of Rs1.1 trillion.

The latest figures highlight Pakistan’s continued transition towards a digital economy. Analysts say wider smartphone adoption, expanding fintech services and government initiatives have accelerated the use of secure electronic payments. They believe continued growth in digital transactions can improve financial inclusion, increase transparency and reduce the country’s reliance on cash.