Karachi, December 30, 2023 – The State Bank of Pakistan (SBP) has unveiled its latest Quarterly Payment Systems Report, showcasing the dynamic landscape of the country’s payment ecosystem during the first quarter of the fiscal year 2023-24.
The report underscores key developments, digital transactional activities, and the burgeoning expansion of financial services.
As of the quarter-end, Pakistan boasted a diverse financial services landscape, with 33 Banks, 11 Microfinance Banks (MFBs), 4 Electronic Money Institutions (EMIs), and 5 Payment Service Providers/System Operators (PSOs/PSPs) delivering payment services nationwide. The SBP, in its continued efforts to fortify the payments infrastructure, operates the Real-time Gross Settlement System (RTGS) and Raast—an instant payment solution.
Furthermore, the financial inclusivity drive has seen 16 banks and MFBs extending their services to Branchless Banking (BB), thus broadening the accessibility of financial services to previously underserved communities.
The data revealed an impressive uptake in digital platform users, with 17.0 million mobile banking users, 10.3 million internet banking users, 2.4 million E-wallet holders (issued by EMIs), and a substantial 61.3 million M-wallet holders (issued by BB service providers) by the end of the quarter.
In tandem with the growing user base, there were 54.3 million payment cards issued, where 79% were debit cards, 17% social welfare cards, and 4% credit cards, showcasing the diversified nature of financial instruments in the market.
A significant revelation from the report was the spike in the share of digital payments in retail transactions, reaching 80% during the quarter, up from 74% in the corresponding quarter of the previous year. Over-the-counter (OTC) transactions constituted 20% of retail transactions, but their share by value reached an impressive 87%, underscoring the preference for the OTC channel in higher-value transactions.
In terms of transaction volume, Large Value Payments (LVPs) settled by RTGS amounted to 1.4 million, totaling PKR 199 trillion. Concurrently, retail transactions processed by banks, MFBs, and EMIs during the quarter reached 702 million with a total value of almost PKR 134 trillion. These retail transactions included funds transfers (37%), cash withdrawals (36%), purchases at POS & e-commerce platforms (10%), bill payments & mobile top-ups (7%), and cash/cheque deposits (7%), with the remaining 3% comprising other payments.
Funds transfers emerged as the most prevalent transaction on digital channels by volume, while on OTC, cash/cheque deposits took the lead, highlighting the diverse nature of transactional preferences among consumers.
All these retail transactions were facilitated by a robust payments network comprising 17,768 bank branches, 18,117 ATMs, 118,444 POS terminals, and 7,310 registered e-commerce merchants collaborating with banks/MFBs. This extensive network played a pivotal role in ensuring seamless and accessible financial services for the citizens of Pakistan.
The SBP’s Quarterly Payment Systems Report reflects a vibrant and growing digital financial landscape, emphasizing the positive trajectory of Pakistan’s payment system in the evolving global financial landscape.
