Pakistan targets 2 million digital merchants, 120 million online banking users, 15 billion digital transactions by FY26

The government aims to increase the number of active digital merchants to 2 million, raise mobile and internet banking users from 95 million to 120 million within the next year, and double annual digital payment transactions to 15 billion under the Prime Minister’s Cashless Economy Initiative.

In addition, a major goal is to route 100% of overseas remittances through bank accounts or mobile wallets, up from the current 80%. This move is designed to reduce cash payouts and enhance the transparency of remittance flows.

According to a news report, the SBP will play a key role in expanding mobile banking services to all segments of society. The committees formed under the PM’s Cashless Economy Initiative have set ambitious targets for the State Bank of Pakistan (SBP) to accelerate the growth of digital financial services and fintech adoption across the country. 

Recently, Minister for IT and Telecom, Shaza Fatima, highlighted Pakistan’s potential to transition to a cashless economy, citing the country’s over 143 million broadband users. She noted that mobile wallets now outnumber traditional bank accounts, and the country’s branchless banking infrastructure is strong. 

However, she also mentioned that only two out of the four cellular mobile operators, Jazz and Telenor, have established substantial mobile wallet platforms.

Telenor’s Easypaisa, launched in 2009, was Pakistan’s first mobile wallet and is now the country’s first digital bank which now has around 18 million monthly active users, including 14 million app users.

JazzCash, which started in 2012, has emerged as the market leader with 21 million monthly active users and 15 million app users. 

While JazzCash has a strong presence in rural areas, Easypaisa is more prominent in urban centres. Despite speculation surrounding its future due to the Telenor-PTCL merger, Easypaisa has retained a loyal user base.

The strength of mobile wallets lies in their simplicity, with accounts linked to mobile phone numbers, and transactions facilitated by local shopkeepers who act as agents for cash-in and cash-out services. However, Ufone’s Upaisa has limited reach, and Zong has yet to enter the digital financial services market.