KARACHI: Pakistan’s retail payments volume increased 10 per cent to 2.8 billion, while the value of these transactions rose 6.0 per cent, totalling Rs166 trillion in the first quarter of fiscal year 2026, the central bank said on Tuesday.
The State Bank of Pakistan (SBP), in its annual report on payment systems for July-September FY26, said that digital payment channels facilitated 2.5 billion transactions in the first three months of FY26, accounting for 90 per cent of total retail payments, up from 87 per cent in the same quarter last year. The total value of transactions through these channels reached Rs55 trillion. This highlights the increasing popularity of digital payment options across the economy.
The SBP’s report indicates that banks and microfinance banks remain essential to the retail payments ecosystem. They provide the core infrastructure for a variety of transactions, including fund transfers, settlements, card-based payments, mobile banking, internet banking, cash management, cheque clearing, and the issuance of financial instruments such as pay orders and demand drafts. In addition, branchless banking (BB) operators enhance the accessibility of financial services through extensive networks of agents and micro-merchants, serving both urban and underserved or remote areas. Meanwhile, electronic money institutions (EMIs) are transforming the payments landscape by offering e-wallet solutions and encouraging cash-lite transaction practices, thereby promoting the adoption of secure, efficient, and fully digital payment methods.
Mobile app-based payments dominated the digital landscape, with 2 billion transactions conducted through apps provided by banks, BB operators, and EMIs, according to the SBP. This accounted for 81 percent of all digital payments and totalled Rs33.7 trillion in value. These app-based transactions include various types of digital payments, such as person-to-person payments, bill payments, and account and wallet-based merchant payments at both online platforms and physical retail outlets.
Internet banking also witnessed steady growth, with an increasing number of users engaging in transactions through digital channels. The number of payment cards in circulation reached 61.3 million, with 90 per cent being debit cards and 4 percent credit cards.
The Raast instant payment system continued to exhibit strong growth momentum. Person-to-person (P2P) transactions rose to 535 million (a 31 per cent increase) with a value of Rs11.3 trillion during the quarter. Raast’s person-to-merchant (P2M) transactions doubled to 4.3 million, totalling Rs17 billion. Overall, Raast processed 544 million transactions valued at Rs12.8 trillion.
The SBP’s report said that the point-of-sale 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 Rs4.5 trillion across the country. On average, each ATM handled 142 transactions per day with an average ticket size of Rs16,800 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 services, including cash deposits, withdrawals, fund transfers, and bill payments. Bank branches processed 137 million transactions of Rs110 trillion, while BB agents facilitated 129 million transactions amounting to Rs0.9 trillion.
