Digital Retail Payments Surge in Q1 FY25: SBP Report
KARACHI: The volume of retail payments via digital platforms surged by 9%, reaching 1,699 million transactions valued at Rs36 trillion in the first quarter (July-September) of FY25, according to the State Bank of Pakistan (SBP) report released on Friday.
In its Quarterly Payment Systems Review for Q1FY25, the SBP noted that overall retail payment transactions grew by 8%, totaling 1,951 million transactions worth Rs136 trillion. Digital channels now account for 87% of retail payment transactions by volume, showcasing growing public confidence in these systems.
A key driver of this growth has been mobile banking apps offered by banks, microfinance banks (MFBs), digital banks (BBs), and electronic money institutions (EMIs). These apps facilitated 1,301 million transactions worth Rs19 trillion during the quarter, reflecting an 11% increase in volume and 14% in value.
The number of mobile banking app users grew by 4%, reaching 96.5 million, up from 93 million in the previous quarter. Additionally, e-commerce is becoming a significant part of Pakistan’s digital payments, with online payments increasing by 29%. Of the 118 million online e-commerce transactions, 91% were completed using digital wallets, indicating a shift from traditional card-based payment systems.
Point-of-sale (POS) terminals grew to 132,224, processing 83 million transactions valued at Rs429 billion. Meanwhile, the ATM network expanded to 19,170 machines, facilitating 243 million transactions worth Rs3.9 trillion, continuing its critical role in cash withdrawals.
The Raast instant payment system also saw success, processing 197 million transactions totaling Rs4.7 trillion. The report highlights the collective efforts of banks, fintech companies, payment service providers, and regulators in fostering innovation and financial inclusion within Pakistan’s payment ecosystem.
The inclusion of underserved populations, particularly in rural areas, has gained momentum. Branchless banking agents were instrumental, processing 28 million bill payments and mobile top-ups, as well as 75 million cash deposit and withdrawal transactions during the quarter.
Retail merchants adopting digital payments saw a 16% increase, driven by the rise of branchless banking initiatives that support mobile wallets, QR codes, and other digital payment methods. These developments emphasize the vital role of alternative financial channels in bridging economic gaps across the country.
