In a recent update, the State Bank of Pakistan has released its Q1-FY24 Payment Systems Review, providing insights into the evolving digital payment landscape in the country. This time, the report adopts a new format, presenting data by transaction type rather than channel, making comparisons with previous periods a bit more intricate.
The overall digital channels contribute significantly, accounting for 80% of volumes in Q1-FY24. However, a closer examination reveals that only 10.2% of this meets a more stringent definition of digital transactions, signaling a nuanced scenario.
Mobile Banking (MB) emerges as a standout performer, experiencing an impressive 96.8% growth. With a throughput of PKR 8.3 trillion and 212.5 million transactions, MB is on the verge of surpassing ATMs to become the largest e-banking channel.
Internet Banking, while not as flashy as MB, records commendable growth of 32.9%, surpassing the PKR 5-trillion mark for the first time. Boasting the highest average transaction size among digital retail channels at PKR 102,269, Internet Banking continues to play a crucial role in the digital payment ecosystem.
On the flip side, E-commerce faces challenges, with a modest 6.64% increase in volumes. Despite a throughput rise of 18.17% YoY to PKR 39.6 billion, the sector struggles to surpass previous peaks, reflecting the complexities of the current landscape.
Point of Sale (POS) remains a shining star, outpacing other digital payment channels with a 49.3% increase in throughput, reaching PKR 323 billion in Q1-FY24. With 59.8 million transactions and the deployment of 3,156 new machines, POS continues to demonstrate robust growth.
While the report provides detailed insights, challenges arise in understanding the scale of Raast and EMIs. The State Bank’s data on Raast lacks breakdowns by P2P and bulk use cases, and details on EMIs, including transaction-level information, remain elusive.
In conclusion, the Q1-FY24 Payment Systems Review offers a comprehensive glimpse into the dynamic digital payment landscape in Pakistan, showcasing both successes and challenges across various channels.
