Retail payments in Pakistan recorded strong momentum during the first quarter of fiscal year 2025-26, with transaction volumes rising to 2.8 billion, reflecting a 10 percent increase compared to the previous quarter, while the total value of payments grew by 6 percent to PKR 166 trillion.

According to the State Bank of Pakistan’s (SBP) Quarterly Report on Payment Systems released on Tuesday, the growth was primarily driven by the continued shift toward mobile app-based banking, highlighting deeper digital adoption across consumers and businesses.

By volume, retail payments comprised 1,445 million fund transfers, followed by 400 million merchant payments, 353 million bill payments and top-ups, 311 million cash withdrawals through ATMs, branches and agents, and 87 million cash deposits. In value terms, fund transfers dominated retail payments at PKR 123 trillion, followed by cash withdrawals and cash or instrument deposits amounting to PKR 28 trillion.

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 digital transactions reached PKR 55 trillion, underscoring the growing reliance on electronic channels across the economy.

Mobile app-based payments remained the leading digital channel, with 2.0 billion transactions conducted through banking apps, branchless banking providers and electronic money institutions. These transactions accounted for 81 percent of all digital payments and amounted to PKR 33.7 trillion, covering person-to-person transfers, bill payments and merchant payments at online platforms and physical retail outlets.

Internet banking also witnessed steady growth, while payment cards in circulation increased to 61.3 million, of which 90 percent were debit cards and 4 percent credit cards. The Raast Instant Payment System continued to show strong momentum, with person-to-person transactions rising 31 percent to 535 million, valuing PKR 11.3 trillion, while Raast person-to-merchant transactions doubled to 4.3 million, amounting to PKR 17 billion.

PoS terminals and e-commerce activity expanded further, recording 1.5 million daily card-based transactions. A nationwide network of 20,527 ATMs processed 267 million transactions worth PKR 4.5 trillion, while bank branches and branchless banking agents continued to play a key role in supporting over-the-counter services.

Overall, these developments reflect continued progress toward a more inclusive, efficient and digitally enabled retail payment ecosystem in Pakistan.