The central bank has reported a surge in digital banking transactions during the second quarter (October-December) of the fiscal year, marking a significant upswing in mobile and internet-based activities.
According to the State Bank’s quarterly “Payment Systems Review,” mobile app-based transactions surged by 29 percent to 280 million, while internet banking transactions rose by 15 percent to 57 million compared to the previous quarter. The value of mobile banking transactions crossed the Rs11 trillion mark for the first time, reaching Rs11.2 trillion, with internet banking transactions totaling Rs5.4 trillion.
During the quarter, the number of mobile and internet banking users also saw notable increases, jumping by 8 percent and 5 percent, respectively. The report highlights that the share of internet and mobile app-based transactions surpassed card-based transactions, indicating a growing preference for digital channels.
E-wallet transactions exhibited a similar growth pattern, with a quarterly increase of 31 percent by volume and 37 percent by value. Card-based transactions at ATMs, point-of-sale (POS) terminals, and e-commerce platforms also experienced significant growth, totaling 235 million, 65 million, and 11 million transactions, respectively. ATMs remained the preferred channel for cash withdrawal, with 229 million transactions during the quarter.
The report notes that 82 percent of retail transactions were conducted digitally during the October-December quarter, compared to 80 percent in the previous quarter, showcasing a continued increase in digital payments adoption. Conversely, in terms of value, 85 percent of retail payments were conducted at over-the-counter (OTC) locations, with only 15 percent through digital channels.
Four major trends stood out during the review period. First, there was a consistent adoption of mobile app and internet banking, with these channels constituting the largest share of total digital transactions. Second, there was an increase in Raast usage, with transactions reaching 107 million, amounting to more than Rs2 trillion. Thirdly, e-wallets gained popularity, especially among youth and freelancers, with a total of 2.7 million users. Overall, these trends reflect a growing preference for digital channels over traditional options among Pakistanis.
For large value payments, the Real-time Gross Settlement System (RTGS) processed 1.5 million transactions amounting to Rs273 trillion, maintaining an exceptional availability rate of 99.99 percent. The report also highlights the presence of 44 banks and microfinance banks (MFBs) providing conventional and digital services, with various channels catering to a diverse user base across the country.
