Digital channels account for 92pc of retail payments

KARACHI: Digital payments have changed the landscape of banking transactions in the country as 92 per cent retail transactions were carried out through this mode during the second quarter of FY26, according to the State Bank of Pakistan.

The central bank released its report on payment systems for the October-December 2025 quarter on Thursday.

Out of the 3.4 billion retail transactions carried out during the period, 92pc were conducted through digital channels. The percentage for the same period during October-December 2024 was 88pc.

The number of retail transactions went up by eight per cent from the previous quarter, while its value rose by seven per cent, reaching Rs167 trillion.

The number of payments through the digital channel reached 3.1bn, amounting to Rs64tr, reflecting the growing adoption of digital payment methods across the economy.

App-based payments

Mobile app-based payments continued to dominate the digital landscape, with 2.6bn transactions conducted through apps offered by branchless banking (BB) players, banks, and EMIs.

These transactions represented 83pc of all digital payments and amounted to Rs40tr in value, supporting a wide range of services including person-to-person transfers, bill payments, and account and wallet-based merchant payments across online platforms and physical retail outlets.

Internet banking also recorded a steady growth, with transaction volume and value growing by 11pc and 22pc, respectively.

During the quarter, Raast Instant Payment System continued to maintain a strong momentum, processing 645.7 million transactions amounting to Rs18.5tr. Person-to-Person (P2P) transactions rose to 603m, increasing by 13pc and valued at Rs15.7tr.

On the other hand, Raast P2M transactions shot up to 33.6m, amounting to Rs167.6bn.

Over nine million transactions worth Rs 2.6tr were processed by government and corporates using the Raast Bulk Service.

Point-of-sale terminals and e-commerce activity using cards continued to expand, collectively processing around 1.7m card-based transactions per day.

Meanwhile, a nationwide network of 20,976 ATMs facilitated 277m transactions amounting to Rs4.9tr during the period.

In addition, 20,143 bank branches and 763,262 banking agents provided over-the-counter (OTC) services such as cash deposits, withdrawals, fund transfers, and bill payments.

Published in Dawn, March 20th, 2026