The State Bank of Pakistan (SBP) has unveiled its Quarterly Payment Systems Report for the first quarter of fiscal year 2023-24, shedding light on significant developments in the country’s payment ecosystem and presenting a comprehensive overview of digital transactional activities.
As of the quarter’s conclusion, 33 Banks, 11 Microfinance Banks (MFBs), 4 Electronic Money Institutions (EMIs), and 5 Payment Service Providers/System Operators (PSOs/PSPs) were actively providing payment services across Pakistan. The report also highlighted the contributions of SBP-operated systems, including the Real-time Gross Settlement System (RTGS) and Raast, an instant payment solution, enhancing the country’s payments infrastructure. Additionally, 16 banks and MFBs extended their services to Branchless Banking (BB), expanding financial accessibility.
In terms of digital platform users, the report noted 17.0 million mobile banking users, 10.3 million internet banking users, 2.4 million e-wallet holders (issued by EMIs), and 61.3 million m-wallet holders (issued by BB service providers) by quarter-end. The report also detailed the issuance of 54.3 million payment cards, with 79% being debit cards, 17% social welfare cards, and 4% credit cards.
The share of digital payments in retail transactions within the banking system rose to 80%, compared to 74% in the same quarter of the previous year. Over-the-counter (OTC) transactions accounted for 20% in retail transactions this quarter, representing 87% of the total transaction value, indicating a customer preference for OTC channels in higher-value transactions.
In terms of volume, Large Value Payments (LVPs) settled by RTGS amounted to 1.4 million, totaling PKR 199 trillion. Retail transactions processed by banks, MFBs, and EMIs during the quarter reached 702 million, with a value of nearly PKR 134 trillion. Key components of retail transactions included funds transfers (37%), cash withdrawals (36%), purchases at POS & e-commerce platforms (10%), bill payments & mobile top-ups (7%), and cash/cheque deposits (7%).
Funds transfers emerged as the predominant transaction on digital channels by volume, while cash/cheque deposits took the lead in OTC transactions. The entire retail transactions network was facilitated by the extensive infrastructure of banks, MFBs, and EMIs, encompassing 17,768 bank branches, 18,117 ATMs, 118,444 POS terminals, and 7,310 registered e-commerce merchants.
For more details, refer to the full report: SBP Quarterly Payment Systems Report: https://www.sbp.org.pk/psd/pdf/PS-Review-Q1FY24.pdf
