Digital payment channels in Pakistan processed transactions totaling Rs68.3 trillion between January and March 2026, according to the latest quarterly report from the State Bank of Pakistan (SBP). This volume was part of a broader retail banking system that handled 3.7 billion transactions worth Rs168.8 trillion during the third quarter of the 2026 fiscal year.
The SBP report indicates that digital channels now command a 92% share of total retail payments by volume, processing 3.4 billion transactions. This growth reflects a shift in the national financial ecosystem as individuals and businesses increasingly move away from cash-based transactions toward mobile banking apps, e-money wallets, and internet banking portals.
Mobile banking and digital wallets emerged as the primary drivers of this expansion. According to the SBP, banking apps and wallets provided by banks, branchless banking providers, and electronic money institutions (EMIs) conducted 2.89 billion transactions, amounting to Rs41.67 trillion in value.
How mobile apps and wallets are driving financial adoption
The adoption of app-based banking has reached a significant scale across various demographics. As of March 2026, the SBP reported that branchless banking mobile app users reached 95.8 million, while traditional banking mobile app users grew to 28.9 million. Additionally, EMI wallet app users rose to 7.3 million, and internet banking users reached 16.2 million.
The central bank attributed this growth to a consumer preference for the security and convenience offered by digital wallets. This transition is supported by the State Bank of Pakistan’s ongoing efforts to digitize the economy and reduce the reliance on physical currency for retail trade.
The role of Raast in the digital ecosystem
The Raast instant payment system continues to see strong momentum in both person-to-person (P2P) and person-to-merchant (P2M) sectors. During the January-March quarter, Raast processed a total of 742 million transactions with a total value of Rs23.27 trillion.
P2P transactions through Raast increased to 664 million, amounting to Rs18.88 trillion, up from 603 million transactions worth Rs15.69 trillion in the previous quarter. The SBP also noted the expansion of Raast P2M services, with more than 2.6 million merchants now registered with aliases by the end of the quarter.
Growth in QR payments and e-commerce
QR-enabled merchant payments showed a sharp increase in adoption. Transactions through QR merchants reached 87.3 million, representing a 41% increase quarter-on-quarter. The total value of these transactions reached Rs0.5 trillion, a 63% increase that the SBP attributes to wider merchant acceptance of digital payment methods.
E-commerce activity also expanded via account and wallet-based channels. The SBP reported 434.5 million online purchases totaling Rs0.47 trillion during the quarter. This activity complements the use of payment cards, which remain a staple of the system; 68.25 million cards are currently in circulation, with debit cards making up 84% of that total at 57.2 million.
Payment card usage during the quarter included:
- ATMs: 272.2 million transactions totaling Rs4.99 trillion.
- POS Terminals: 150.4 million transactions totaling Rs0.81 trillion.
- E-commerce Platforms: 32.3 million transactions totaling Rs0.14 trillion.
High-value settlements and the PRISM+ system
While retail payments are shifting toward apps, large-value transactions continue to rely on the Real-Time Gross Settlement (RTGS) system, known as PRISM+. The SBP reported that PRISM+ settled 1.5 million transactions amounting to Rs389.8 trillion during the quarter.
The report highlighted that the settlement of government securities continues to represent the largest share of the transaction value within the PRISM+ system. Despite the rapid growth of digital retail channels, the SBP noted that physical bank branches and branchless banking agents still provide essential over-the-counter financial services for a segment of the population.
The State Bank of Pakistan is expected to release its next quarterly payment system review following the conclusion of the next three-month reporting cycle. Readers can find official updates and financial reports on the SBP’s official website.
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