Retail payment activity in Pakistan expanded further in the first quarter of FY2025-26, with transaction volumes rising to 2.8 billion, up 10% quarter-on-quarter, and total value increasing 6% to Rs166 trillion, according to the Quarterly Report on Payment Systems released by the State Bank of Pakistan.
The SBP said the growth was driven mainly by rising adoption of digital channels. Digital payments accounted for 2.5 billion transactions, or 90% of total retail payments, compared with 87% in the same quarter last year. The value of transactions conducted through digital channels reached Rs55 trillion.
Mobile app-based banking dominated digital payments, recording 2.0 billion transactions worth Rs33.7 trillion, representing 81% of all digital payments. These transactions covered person-to-person transfers, bill payments and merchant payments across both online platforms and physical outlets.
Internet banking also showed steady growth, while the number of payment cards in circulation increased to 61.3 million. Of these, debit cards accounted for 90%, while credit cards made up 4%.
The Raast Instant Payment System maintained strong momentum during the quarter. Person-to-person transactions rose 31% to 535 million, with a value of Rs11.3 trillion, while person-to-merchant transactions doubled to 4.3 million, amounting to Rs17 billion. Overall, Raast processed 544 million transactions valued at Rs12.8 trillion.
Card-based payments at point-of-sale terminals and through e-commerce platforms averaged 1.5 million transactions per day. A network of 20,527 ATMs facilitated 267 million transactions worth Rs4.5 trillion, with each ATM handling an average of 142 transactions per day and an average ticket size of Rs16,800.
Physical channels continued to support retail payments alongside digital platforms. A total of 19,852 bank branches processed 137 million transactions amounting to Rs110 trillion, while 756,480 branchless banking agents facilitated 129 million over-the-counter transactions worth Rs0.9 trillion.
The SBP said the figures point to continued progress toward a more efficient and digitally enabled payments ecosystem, with growing reliance on mobile and instant payment platforms while physical channels remain relevant.
