Islamabad, March 28, 2025 – The State Bank of Pakistan (SBP) has announced a significant milestone in Pakistan’s financial sector, as the number of retail payments processed in a single quarter has exceeded 2 billion transactions for the first time.
According to the SBP’s Payment Systems Review for the second quarter (October–December 2024) of FY25, retail transactions reached 2,143 million, reflecting an 11% growth from the previous quarter. The total value of these payments surged to PKR 154 trillion, marking a 12% increase.
Rapid Growth in Digital Payments
The SBP highlighted that this remarkable growth is primarily driven by digital payment channels, with an increasing shift towards mobile banking apps and internet banking portals. Historically, the average quarterly increase in retail payments has been around 5%, but the latest figures show a sharp rise of 12% in value, largely attributed to the expanding transaction sizes in mobile and online banking.
• Digital Transactions Dominate: Digital channels processed 1,880 million transactions, accounting for 88% of total retail payments, whereas Over-the-Counter (OTC) payments contributed 263 million transactions (12%). By value, digital transactions amounted to PKR 45 trillion (29%), while OTC transactions totaled PKR 109 trillion (71%).
• Mobile App-Based Payments: Mobile banking applications have played a pivotal role in this growth. During the quarter, 1,450 million transactions were conducted via mobile banking apps, with a combined value of PKR 24.0 trillion. This reflects a 13% increase in volume and 28% increase in value compared to the previous quarter. Mobile banking apps now account for 77% of all digital payments by volume and 53% by value.
• Internet Banking Gains Traction: The number of internet banking users grew to 13.3 million (7% increase), conducting 69 million transactions worth PKR 9.7 trillion. These payments accounted for 4% of total digital transactions by volume but 22% by value, indicating a strong preference among businesses for high-value transactions through online banking portals.
Increased Adoption of Payment Cards and ATMs
• Payment Cards Usage: A total of 56.4 million payment cards were in circulation, including debit cards (88%) and credit cards (4%). These cards were used to make 263 million ATM transactions, 99 million POS transactions, and 28 million e-commerce payments.
• ATM Transactions: Pakistan had 19,519 ATMs, processing 259 million withdrawals worth PKR 4.3 trillion. Each ATM facilitated an average of 144 transactions per day, with an average transaction size of PKR 16,400.
• POS Terminals Expansion: The number of Point-of-Sale (POS) terminals grew to 151,646, processing 963,000 daily transactions. In total, 89 million POS transactions worth PKR 510 billion were recorded, marking a 7% increase in volume and 19% in value.
Growth in E-Commerce and Digital Retail Payments
E-commerce has witnessed exceptional growth, with 152 million online transactions, representing a 30% quarterly increase by volume and a 32% increase in value (PKR 192 billion). Of these, 92% of transactions were completed via digital wallets and bank accounts, while 8% were card-based payments.
Retail merchants, including kiryana store operators, increasingly accepted digital payments, processing 22 million transactions worth PKR 58 billion. This marks a 4% growth in volume and a 9% increase in value from the previous quarter. The SBP noted that retailers are rapidly adopting QR code-based payment solutions as an alternative to cash transactions.
Expansion of Raast Instant Payment System
The Raast Instant Payment System, an initiative led by the SBP, continued its upward trajectory.
• Raast P2P (Person-to-Person) transactions surged 50% in volume, reaching 294 million transactions, with a total value of PKR 6.1 trillion (32% increase).
• Raast P2M (Person-to-Merchant) adoption gained momentum, with over 700,000 merchants utilizing the service, processing transactions worth PKR 2.9 billion.
• The SBP expects Raast P2M payments to witness exponential growth due to its efficient and user-friendly interface.
Large-Value Transactions Continue to Grow
The Real-Time Gross Settlement (RTGS) system, which handles high-value payments, processed PKR 330.5 trillion in transactions, reflecting a 3% quarterly increase in volume and a 19% increase in value.
Future Outlook
The SBP remains committed to modernizing Pakistan’s payment ecosystem, ensuring secure and efficient digital payment solutions. The continued growth of mobile banking, e-commerce, and Raast indicates a robust digital financial landscape, paving the way for further financial inclusion and economic growth in the country.