Karachi, October 11, 2024 – The State Bank of Pakistan (SBP) has reported a remarkable 35% surge in digital retail payments during the fiscal year 2023-24, both in volume and value.
This surge underscores the growing reliance on digital financial services, reflecting the nation’s swift transition toward digital payment channels.
In its annual report, the SBP highlighted significant advancements in Pakistan’s national payment ecosystem, emphasizing the rapid expansion of digital transactions. The report revealed that retail payments saw substantial growth, with the number of transactions rising from 4.7 billion to 6.4 billion, while the value of these transactions surged from PKR 403 trillion to PKR 547 trillion. This 35% increase in both volume and value marks a transformative year for Pakistan’s payment landscape.
Digital payments accounted for an increasing share of total transactions, with their volume rising from 76% in fiscal year 2022-23 to 84% in FY24. This growth reflects the deepening penetration of digital financial solutions across the country, supported by a growing number of users embracing mobile and internet banking platforms.
The report attributed this expansion to the increased accessibility and variety of digital payment solutions, including mobile banking apps, internet banking, and mobile wallets. The number of mobile app banking users rose by 16%, while internet banking users surged by 25%. Branchless Banking (BB) mobile app wallets, which offer a convenient and flexible option for customers, saw a 2% increase, while e-wallets experienced a staggering 85% growth in user base during the fiscal year.
Notably, digital payments made through mobile banking apps and internet portals saw an impressive 62% jump in transaction volume, reaching 1,346 million transactions. The value of these transactions grew by 74% to PKR 70 trillion, demonstrating the increasing preference for mobile-based financial services. BB mobile app wallets also continued to gain traction, with 2,697 million payments made through these platforms, while 85 million payments were initiated through electronic money institutions (EMIs) e-wallets.
The growth of Pakistan’s payment infrastructure is further underscored by the expansion of the point-of-sale (POS) machine network. The number of POS terminals grew by 8.9% to 125,593, enabling more card-based transactions at retail outlets and contributing to the overall growth in digital payments. This expansion has facilitated greater adoption of digital payments at the retail level, improving convenience for consumers and businesses alike.
E-commerce has also witnessed a substantial transformation, with 87% of digital payments for online purchases now being initiated through bank accounts or digital wallets. In total, 309 million e-commerce payments were processed during FY24, with the total value of these transactions reaching PKR 406 billion.
The SBP’s report underscores the resilience and robustness of Pakistan’s digital financial infrastructure, positioning the country as a regional leader in digital financial services. As the nation continues to embrace digital transformation, the SBP remains committed to fostering innovation, expanding access, and further enhancing the efficiency of the country’s payment systems.
With the strong momentum in digital payment adoption, Pakistan is well on its way to establishing a vibrant, technology-driven financial ecosystem, providing consumers with modern, efficient, and secure payment options.