Pakistan’s digital payment ecosystem is undergoing a rapid and transformative expansion as evidenced by the latest data from the State Bank of Pakistan. During the October to December quarter of 2025, an overwhelming 92 percent of all retail transactions were carried out through digital channels. This significant milestone reflects a major behavioral shift among consumers and businesses alike, signaling that the country is moving decisively toward a cashless economy. The central bank released its Quarterly Report on Payment Systems this Thursday, providing a comprehensive overview of both low-value retail trends and high-value settlements conducted through the formal banking and payment infrastructure.
According to the report, a total of 3.4 billion retail transactions were performed during the quarter. The 92 percent digital share represents a notable increase from the 88 percent recorded during the same period in the previous fiscal year. Overall, the volume of retail transactions grew by 8 percent compared to the previous quarter, while the total value rose by 7 percent to reach a staggering 167 trillion rupees. The State Bank attributed this robust growth primarily to the continued and widespread adoption of mobile app-based banking services, which have become the preferred method for financial management for millions of Pakistanis.
Out of the total retail payments, digital channel transactions reached 3.1 billion in number, amounting to a value of 64 trillion rupees. Mobile applications continued to dominate this landscape, with 2.6 billion transactions processed through apps offered by banks, branchless banking players, and electronic money institutions. These mobile-led transactions accounted for 83 percent of all digital payments and were valued at 40 trillion rupees. This data highlights the versatility of mobile banking in Pakistan, supporting everything from person-to-person transfers and utility bill payments to merchant transactions at both online platforms and physical retail outlets.
The Raast Instant Payment System remains a central pillar of this digital revolution, maintaining strong growth momentum by processing 645.7 million transactions worth 18.5 trillion rupees during the quarter. Within the Raast ecosystem, person-to-person transactions rose to 603 million, marking a 13 percent increase. Additionally, the Raast Bulk Service saw rapid adoption by government and corporate entities, processing over 9 million transactions worth 2.6 trillion rupees. This indicates that the formal sector is increasingly trusting the instant payment rail for high-volume payroll and social welfare disbursements, further integrating the economy into a transparent digital framework.
Beyond mobile apps and instant transfers, internet banking also recorded steady growth, with transaction volume increasing by 11 percent. The number of payment cards in circulation rose to 66.7 million, with debit cards making up the vast majority at 87 percent. While physical infrastructure like ATMs and bank branches still play a role in cash management and high-value over-the-counter services, the shift toward digital is undeniable. On the high-value side, the Real-Time Gross Settlement system settled 1.7 million transactions amounting to 370 trillion rupees, mostly related to government securities. Collectively, these trends underscore Pakistan’s ongoing transition toward a more inclusive, efficient, and technologically enabled financial landscape.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
