Digital channels dominate as 92% of Pakistan’s retail payments go cashless

Digital payments accounted for 92% of all retail transactions in Pakistan during the second quarter of FY26, underscoring a rapid shift toward a cashless economy, according to the State Bank of Pakistan.

The central bank’s quarterly report for October–December 2025 showed that 3.4 billion retail transactions were processed during the period, with volumes rising 8% quarter-on-quarter and total value increasing 7% to Rs167 trillion.

Of these, 3.1 billion transactions worth Rs64 trillion were conducted through digital channels, compared to 88% in the same quarter last year.

Mobile app-based payments remained the primary driver of growth, accounting for 2.6 billion transactions, or 83% of digital volumes, with a total value of Rs40 trillion. These transactions were processed through platforms operated by banks, branchless banking providers and electronic money institutions, covering services such as peer-to-peer transfers, bill payments and merchant transactions.

The Raast continued to expand rapidly, processing 645.7 million transactions valued at Rs18.5 trillion. Person-to-person payments rose 13% to 603 million transactions worth Rs15.7 trillion, while person-to-merchant transactions reached 33.6 million, totaling Rs167.6 billion.

Raast’s bulk payment service also gained traction, with over 9 million transactions amounting to Rs2.6 trillion processed by corporates and government entities.

Internet banking recorded steady growth, with transaction volumes increasing by 11% and values by 22% during the quarter.

In parallel, traditional channels remained active. A network of 20,976 ATMs processed 277 million transactions worth Rs4.9 trillion, while card-based payments through point-of-sale terminals and e-commerce platforms averaged around 1.7 million transactions per day.

The number of payment cards in circulation rose to 66.7 million, with debit cards making up 87% and credit cards 5%, while the remainder comprised prepaid and social welfare cards.

Bank branches and agents also handled significant volumes, with 20,143 branches processing 138 million transactions valued at Rs102 trillion, and 763,262 agents facilitating 135 million transactions worth Rs0.9 trillion through over-the-counter services.

The central bank said the data highlights continued progress toward a more inclusive and digitally enabled payments ecosystem, driven by increasing use of mobile platforms and instant payment infrastructure.