In the third quarter of 2023, retail transactions in Pakistan witnessed a substantial upswing, with a 4.2% surge in volume and an impressive 22.4% increase in value, as reported by the State Bank of Pakistan (SBP) in its quarterly Payment Systems update.
The report outlines significant statistics, showcasing that Large Value Payments (LVPs) settled by Real-Time Gross Settlement (RTGS) reached 1.4 million, totaling Rs. 199 trillion. Concurrently, retail transactions, including those by banks, Microfinance Banks (MFBs), and Electronic Money Institutions (EMIs), hit 702 million, with a cumulative value of nearly Rs. 134 trillion.
Breaking down the retail transactions, funds transfers constituted 37%, cash withdrawals 36%, purchases at Point of Sale (POS) and e-commerce platforms 10%, bill payments and mobile top-ups 7%, and cash/cheque deposits 7%, with the remaining 3% covering various other payments.
Digital channels emerged as the dominant platform for fund transfers, while over-the-counter (OTC) transactions, specifically cash/cheque deposits, stood out prominently.
Facilitating these transactions were the extensive networks provided by banks, MFBs, and EMIs, including 17,768 bank branches, 18,117 ATMs, 118,444 POS terminals, and 7,310 registered e-commerce merchants.
The report also delves into the digital landscape, revealing 17.0 million mobile banking users, 10.3 million internet banking users, 2.4 million e-wallet holders, and 61.3 million m-wallet holders. Additionally, 54.3 million payment cards were issued, dominated by 79% debit cards.
The share of digital payments in the retail banking system climbed to 80%, marking a notable increase from the previous year’s 74%. Conversely, over-the-counter (OTC) transactions accounted for 20% of retail transactions but dominated by value with an 87% share, indicating a preference for OTC channels in higher-value transactions.
The quarter-end snapshot reveals 33 banks, 11 Microfinance Banks (MFBs), 4 Electronic Money Institutions (EMIs), and 5 Payment Service Providers/System Operators (PSOs/PSPs) offering payment services across the country. Furthermore, SBP’s Real-Time Gross Settlement System (RTGS) and Raast, an instant payment solution, contribute significantly to the nation’s robust payment infrastructure. Additionally, 16 banks and MFBs expanded accessibility by venturing into Branchless Banking (BB) services.
