Digital payments in Pakistan continued their strong upward trajectory during the third quarter of FY25, underscoring the country’s rapid transition toward a cash-lite economy. Driven primarily by mobile app-based banking solutions and State Bank–led payment infrastructure, digital channels now process the vast majority of retail transactions nationwide.

During the quarter, digital payment channels accounted for 89 percent of all retail transactions by volume, highlighting a decisive shift in consumer and merchant behavior. This growth reflects increasing trust in digital financial services, wider smartphone penetration, and sustained policy support from the State Bank of Pakistan (SBP).

Mobile Banking and Wallets Lead the Transformation

Mobile app-based platforms—including mobile banking applications, branchless banking (BB) wallets, and e-money wallets—played a central role in this expansion. Collectively, these platforms processed 1,686 million transactions valued at Rs. 27 trillion, posting a 16 percent increase in transaction volume and a 22 percent rise in value compared to the previous quarter.

User adoption across digital banking channels also showed consistent growth:

• Mobile banking app users increased to 22.6 million, reflecting a 7 percent rise

• E-money wallet users reached 5.3 million, up 12 percent

• Branchless banking wallet users climbed to 68.5 million, marking 6 percent growth

• Internet banking users expanded to 14.1 million, also recording a 7 percent increase

This steady expansion demonstrates growing confidence in digital financial platforms across both urban and semi-urban populations.

E-Commerce Payments Surge as Wallets Dominate

E-commerce payments recorded particularly strong momentum during the quarter. Transaction volumes jumped 40 percent to 213 million, while transaction value increased 34 percent to Rs. 258 billion.

Digital wallets overwhelmingly dominated online payments, accounting for 94 percent of e-commerce transactions by value (199.1 million transactions). In comparison, card-based online payments contributed just 6 percent, totaling 13.5 million transactions. This trend highlights a clear consumer preference for wallet-based payments due to their convenience, speed, and ease of integration with online platforms.

In-Store Digital Payments and QR Adoption Expand

Digital payments also gained traction in physical retail environments. During the quarter:

• 140,861 merchants processed 99 million transactions, up 12 percent

• Transaction value reached Rs. 550 billion, reflecting an 8 percent increase

• Payments were facilitated through 179,383 point-of-sale (POS) terminals

Also Read:

Digital Payments in Pakistan Surge as Mobile Banking and E-Commerce Lead Growth – SBP Q3-FY25 Report

Meanwhile, QR code-based payments continued to grow as a low-cost digital acceptance channel. Merchants accepting QR payments processed 21.7 million transactions valued at Rs. 61 billion, signaling rising adoption among small and medium-sized businesses.

Raast and RTGS Strengthen the Payment Backbone

SBP-operated payment systems remained a cornerstone of Pakistan’s digital payments ecosystem. The Raast Instant Payment System processed 371 million transactions worth Rs. 8.5 trillion during the quarter alone. Since its launch, Raast has handled 1.5 billion transactions with a cumulative value exceeding Rs. 34 trillion, reflecting its growing role in person-to-person, person-to-merchant, and government payments.

The Real-Time Gross Settlement (RTGS) system continued to support large-value financial flows, processing 1.5 million transactions amounting to Rs. 347 trillion during the quarter. RTGS remains critical for interbank settlements, government payments, and high-value corporate transactions.

Retail Payments Reach Record Levels

Overall retail payment activity also recorded notable growth. Retail payment volumes increased by 12 percent, reaching 2,408 million transactions, while total transaction value climbed to Rs. 164 trillion during Q3 FY25. These figures underline the accelerating pace at which digital channels are reshaping Pakistan’s financial landscape.

A Digitally Driven Financial Future

The continued rise of digital payments reflects the success of SBP’s strategic initiatives, alongside the collaborative efforts of banks, fintech companies, payment service providers, and merchants. Together, these stakeholders are expanding access, improving efficiency, and fostering greater financial inclusion.

As Pakistan’s digital economy matures, digital payments are expected to play an even larger role in driving economic formalization, transparency, and inclusive growth—positioning the country for a more connected and technology-driven financial future.