Digital Transactions Account for Nearly 90% of Retail Payments in Pakistan in Q3 FY25

Digital payments in Pakistan reached a major milestone during the third quarter of FY25, with almost 90 percent of all retail transactions being processed through digital channels. According to the State Bank of Pakistan’s (SBP) latest Quarterly Payment Systems Review, digital payment systems maintained strong growth momentum, showing consistent increases in transaction volume, value, and user adoption across various digital platforms.

Retail payment volumes grew by 12 percent during Q3 FY25, reaching 2,408 million transactions. These transactions represented a total value of Rs. 164 trillion, reflecting the increasing reliance on digital means to conduct day-to-day transactions in the country. Among these, mobile-based channels continued to dominate, with mobile banking apps, branchless banking wallets, and e-money wallets collectively accounting for 1,686 million transactions worth Rs. 27 trillion. This marks a 16 percent growth in volume and a 22 percent increase in transaction value compared to the previous quarter.

The user base for digital banking also expanded during this period. The number of mobile banking app users rose to 22.6 million, representing a 7 percent increase. Meanwhile, branchless banking and e-money wallet users increased to 68.5 million and 5.3 million, respectively, recording 6 percent and 12 percent growth. Internet banking continued its steady expansion as well, with user numbers climbing to 14.1 million, up by 7 percent over the previous quarter.

E-commerce in Pakistan witnessed notable growth in both transaction volume and value. During Q3 FY25, digital payments for e-commerce rose by 40 percent in volume, totaling 213 million transactions. The total value of these payments grew by 34 percent to reach Rs. 258 billion. Digital wallets dominated this segment, accounting for 94 percent—or 199.1 million—of e-commerce transactions by value, while card-based payments made up only 6 percent with 13.5 million transactions.

In the physical retail space, the trend toward digital payment acceptance continued. A network of 140,861 merchants processed 99 million transactions using point-of-sale terminals, with a combined value of Rs. 550 billion. This reflected a 12 percent rise in transaction count and an 8 percent increase in transaction value. QR code-based payments also showed encouraging uptake, with 21.7 million transactions worth Rs. 61 billion processed by merchants supporting QR payment solutions.

Pakistan’s national payment systems played a foundational role in enabling this digital transition. The Raast instant payment system processed 371 million transactions worth Rs. 8.5 trillion during the quarter. Since its launch, Raast has handled 1.5 billion transactions valued at over Rs. 34 trillion. The RTGS (Real-Time Gross Settlement) system also maintained its position as the primary channel for high-value transactions, recording 1.5 million transactions worth Rs. 347 trillion.

These trends reflect the SBP’s successful execution of its long-term digital transformation strategy. The central bank’s regulatory support, in collaboration with banks, fintechs, and payment service providers, continues to be instrumental in building a robust digital financial ecosystem. With each quarter, Pakistan moves closer to becoming a digitally empowered economy, with financial inclusion, convenience, and efficiency at the core of its payment systems.

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