Karachi, July 19, 2024 – The State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Report for the third quarter (January-March) of the fiscal year 2023-24, offering a comprehensive review of the country’s payment landscape.
According to the SBP report, digital transactions accounted for 83% of all retail payments for the quarter, processed by Banks and Electronic Money Institutions (EMIs). In contrast, 17% of transactions were conducted Over-the-Counter (OTC) at bank branches. Banks and EMIs collectively processed 844 million retail payments totaling PKR 128,470 billion during the quarter. These transactions included 47% funds transfers, 33% cash withdrawals, 11% POS and e-commerce purchases, 6% bill payments and mobile top-ups, with the remaining transactions consisting of deposits, tax payments, invoice-based payments, and donations.
The SBP report highlights significant progress in the adoption of digital payment channels in Pakistan. During the quarter, the digital user base showed a remarkable average growth of 8%, culminating in 59 million BB mobile app users, 17 million mobile banking app users, 11 million internet banking users, and 3 million EMIs’ e-wallet users by the end of the quarter.
The SBP said mobile phone and internet banking services remained the preferred channels for customers. Mobile phone banking transactions increased by 8% to 301 million, while internet banking transactions grew by 3% to 59 million. The amount processed through these channels reached PKR 12,955 billion for mobile phone banking and PKR 6,467 billion for internet banking. The extensive network facilitating these services includes 18,049 bank branches, 18,655 ATMs, 120,641 POS terminals, and 648,333 BB agents.
Raast, Pakistan’s instant payment system, processed 140 million transactions totaling PKR 3,437 billion in Q3 FY24, marking a 31% increase in volume and a 48% increase in value from the previous quarter, according to the SBP. This substantial growth underscores Raast’s crucial role in the nation’s payment landscape. Additionally, a total of 1.5 million transactions amounting to PKR 315,596 billion were settled through PRISM (RTGS), which included settlements of government securities, funds transfers, and ancillary clearing transactions.
The SBP’s report indicates a clear shift towards digital payment methods in Pakistan, reflecting the growing trust and reliance on electronic transactions. This trend is expected to continue as more users adopt digital banking services, further integrating technology into the country’s financial infrastructure.