87% of Pakistan’s Retail Transactions Processed Digitally
- Fahad Bin Khalid
- December 23, 2024
- 4:05 pm
- 34
- Technology
Pakistan Digital Transactions Surge to 87% in Q1 FY25: SBP
The State Bank of Pakistan (SBP) has revealed that Pakistan digital transactions accounted for 87% of all retail transactions during the first quarter of FY25. This highlights the country’s remarkable progress in adopting digital payment methods and modernizing its economy.
Major Growth in Digital Transactions
The SBP's quarterly payment systems review reported that 1.699 billion retail transactions were processed through digital channels. Over-the-counter (OTC) payments made up the remaining 13%, amounting to 251 million transactions. The total value of digital payments rose by 27% to Rs36 trillion, up from 24% in the previous quarter.
Raast Driving Instant Payments
Raast, Pakistan’s instant payment solution, has played a significant role in boosting Pakistan digital transactions. Since its launch in 2022, Raast has processed 848 million transactions worth Rs19 trillion. In Q1 FY25 alone, Raast handled 197 million transactions worth Rs4.7 trillion, averaging 3 million transactions per day. By the end of the quarter, 39.5 million Raast IDs were registered, showcasing its growing popularity among individuals and businesses.
Mobile Banking and E-Commerce See Rapid Growth
Mobile banking apps have also contributed to the surge in digital payments, processing 1.301 billion transactions worth Rs19 trillion during the quarter. This represents an 11% increase in volume and a 14% rise in value compared to the previous quarter. The number of mobile banking users reached 96.5 million, reflecting a 4% growth.
E-commerce witnessed a significant boost, with digital wallets facilitating 91% of 118 million transactions. This shift from traditional card-based payments highlights the increasing preference for convenient digital solutions among consumers.
POS and ATM Transactions Still Important
The Point of Sale (POS) network expanded to 132,224 terminals, enabling 83 million transactions worth Rs429 billion. While digital methods dominate, ATMs remain a vital channel for cash withdrawals, facilitating 243 million transactions worth Rs3.9 trillion during the quarter.
Branchless banking agents processed payments for 693,178 merchants, offering services like mobile top-ups, cash deposits, and withdrawals. These agents play a critical role in providing financial services to underserved areas, bridging the gap in the country’s financial infrastructure.
Progress Towards a Digital Economy
The SBP emphasized the importance of a robust payment system for economic growth. Safe, efficient, and reliable digital channels provide better options for fund transfers, purchases, and payment settlements. With initiatives like Raast and the rapid adoption of mobile banking, Pakistan is making significant strides toward building a fully digitized economy.
Conclusion
Pakistan digital transactions continue to rise, with 87% of retail payments now processed through digital platforms. This marks a new era in the country’s financial landscape, driven by advancements in mobile banking, e-commerce, and instant payment systems like Raast. As Pakistan embraces digital transformation, these developments signal a brighter, more connected future for its economy.
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