The State Bank of Pakistan (SBP) has released its Quarterly Report on Payment Systems, which presents a comprehensive analysis of the existing payment ecosystem and key evolving trends shaping the payment landscape. It highlights notable developments across the sector during the first quarter (Q1) of Fiscal Year 2025-26.
Retail payment volumes rose to 2.8 billion transactions, marking a 10 percent quarterly growth, while the value of retail payments increased to PKR 166 trillion, up 6 percent over the previous quarter. The continued rise in mobile app-based banking primarily drove this expansion.
Digital payment channels accounted for 2.5 billion transactions, representing 90 percent of total retail payments, up from 87 percent in the same quarter last year. The value of transactions through digital channels reached PKR 55 trillion, underscoring the growing usage of these channels across the economy.
Mobile app-based payments dominated the digital landscape, accounting for 2.0 billion transactions through apps offered by banks, branchless banking (BB) providers, and EMIs. These transactions accounted for 81 percent of all digital payments and totaled PKR 33.7 trillion. This channel is used for various types of digital payments, including person-to-person payments, bill payments, and merchant payments made via accounts and wallets, across both online platforms and physical retail outlets.
Internet banking also saw steady expansion, with more users conducting transactions through digital channels. Card users also expanded with payment cards in circulation reaching 61.3 million, of which 90 percent are debit cards, and 4 percent are credit cards.
The Raast Instant Payment System continues to maintain strong growth momentum. Person-to-Person (P2P) transactions rose to 535 million (up 31 percent) and totaled PKR 11.3 trillion during the quarter. Raast P2M transactions, on the other hand, doubled to 4.3 million, amounting to PKR 17.0 billion. Overall, Raast processed 544 million transactions valuing PKR 12.8 trillion.
PoS terminals and e-commerce activity continued to grow, registering 1.5 million daily card-based transactions. A network of 20,527 ATMs facilitated 267 million transactions amounting to PKR 4.5 trillion across the country. On average, each ATM handled 142 transactions per day with an average ticket size of PKR 16,800 per transaction. Alongside ATMs and other digital channels, physical touchpoints continued to support retail payments. 19,852 bank branches and 756,480 BB agents provided over-the-counter (OTC) services, including cash deposits, withdrawals, fund transfers, and bill payments. Bank branches processed 137 million transactions worth PKR 110 trillion, while BB agents facilitated 129 million transactions totaling PKR 0.9 trillion.
These developments collectively reflect continued progress toward a more inclusive, efficient, and digitally enabled payments ecosystem in Pakistan.
For details: https://www.sbp.org.pk/psd/pdf/PS-Review-Q1FY26.pdf
