Digital channels dominate by count: Pakistan digital payments
Digital payments accounted for more than 92 per cent of retail payment transactions in Pakistan during fiscal year 2025-26, as the country continued its rapid shift toward mobile and digital financial services.
According to the State Bank of Pakistan’s Annual Payment Systems Review FY2025-26, released on Tuesday, retail payment transactions increased 58 per cent to 14.3 billion, up from 9.1 billion in the previous fiscal year. Their total value rose 10 per cent to Rs672.7 trillion.
Digital channels processed 13.2 billion transactions worth Rs257.1 trillion during the year, up from 8 billion transactions worth Rs178.6 trillion in FY2025. But digital payments made up only 38 per cent of total retail payment value, showing that cash and over-the-counter channels remain important for larger transactions.
Mobile leads the shift
Mobile-based payment services were the main driver of digital adoption, processing 11.1 billion transactions, up 79 per cent year on year. Mobile banking apps, branchless banking apps, e-wallets and other mobile services accounted for 78 per cent of all retail transactions.
The payment infrastructure expanded sharply. QR-enabled merchants more than tripled to 3.84 million, while point-of-sale devices increased 49 per cent to 337,791 by June 2026. E-commerce merchants registered with banks rose from 9,584 to 23,356.
User base keeps growing
Digital banking users continued to climb. Branchless banking app users reached 99.1 million and mobile banking users rose to 30.4 million. E-money wallet users also increased 37 per cent to 7.9 million.
Despite the growth, over-the-counter payments continued to dominate in value. OTC transactions through bank branches and branchless banking agents reached Rs415.7 trillion, or around 62 per cent of total retail payment value.
The SBP said there remains significant potential to shift higher-value transactions involving businesses, government entities and financial institutions toward digital channels.
| Indicator | FY2025-26 |
|---|---|
| Retail transactions | 14.3bn (+58%) |
| Digital transactions | 13.2bn (+65%) |
| Digital share by count | 92%+ |
| Digital share by value | 38% |
| Mobile transactions | 11.1bn (+79%) |
| QR merchants | 3.84m (tripled) |
Frequently asked questions
What did the SBP’s payment review find?
Digital channels processed 13.2 billion transactions worth Rs257.1 trillion in FY2025-26, accounting for over 92 per cent of retail transactions by count but only 38 per cent by value.
What drove the growth?
Mobile-based payments were the main driver, processing 11.1 billion transactions, up 79 per cent, and making up 78 per cent of all retail transactions.
Is cash still used for big payments?
Yes. Over-the-counter payments reached Rs415.7 trillion, about 62 per cent of retail payment value, showing cash still dominates larger transactions.
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Originally reported by techjuice.pk.
