Karachi, March 13, 2024 – In a testament to the digital transformation sweeping Pakistan, the State Bank of Pakistan (SBP) announced on Wednesday that the number of mobile banking users in the country reached an impressive 16 million by the close of December 31, 2023.
This revelation came as part of the SBP’s Quarterly Payment Systems Review for the second quarter of the fiscal year 2023-24, highlighting the nation’s robust progress in the digital payments landscape.
The report underscored the dynamic growth of Pakistan’s payment ecosystem, providing an insightful overview of the country’s digital transactions landscape. Mobile and Internet Banking emerged as the preferred modes of digital transactions for Pakistanis, with user bases reaching 16 million and 11 million, respectively. This represents a noteworthy quarterly growth rate of 8% and 5%, signifying the increasing reliance on digital platforms for financial transactions.
An encouraging trend observed in the report is the surge in the number of e-wallets registered with Electronic Money Institutions (EMIs), experiencing a remarkable 15% increase to reach 2.7 million during the quarter. Over the last four quarters, this marks more than a twofold increase, showcasing the growing acceptance of digital wallets among the populace. Furthermore, Branchless Banking (BB) service providers recorded over 67 million registered m-wallets during the same period.
Retail transactions processed by Banks, Microfinance Banks (MFBs), and EMIs witnessed a substantial quarterly growth of 15%, a significant uptick compared to the 5% growth in the previous quarter. The report revealed that digital transactions constituted 82% of overall retail transactions by volume during the quarter, showcasing the increasing reliance on digital channels for everyday financial activities.
Raast (Instant Payment System) and PRISM (Real-Time Gross Settlement System) emerged as pivotal players in Pakistan’s digital financial services landscape. Raast, the instant payment solution, facilitated a staggering 107 million funds transfer transactions, totaling more than PKR 2 trillion in Q2-FY24. PRISM processed 1.5 million large-value payments amounting to PKR 273 trillion, with funds transfer settlements contributing 29%, government securities settlements at 70%, and clearing transactions settlements at 1%.
Pakistan’s payments infrastructure comprises 33 Banks, 11 Microfinance Banks (MFBs), 5 Payment System Operators/Service Providers (PSOs/PSPs), 5 Electronic Money Institutions (EMIs), and various Fintechs, in addition to the Real-Time Gross Settlement System PRISM and Raast Instant Payment System. The extensive network includes 18,178 branches, 18,441 ATMs, 121,987 POS machines, and e-commerce payment gateways serving 7,630 registered e-merchants. Sixteen banks and MFBs are also extending their reach through Branchless Banking (BB) services, ensuring broader accessibility to banking services for the populace.
The surge in mobile banking users and the overall growth in digital transactions underscore the nation’s transition towards a more technologically advanced and inclusive financial landscape. The SBP’s commitment to fostering a robust digital payments infrastructure positions Pakistan as a frontrunner in the global push towards a cashless society. The future looks promising as the country continues to embrace and adapt to the ever-evolving digital financial landscape.
