SBP Reports 87% Retail Transactions via Digital Channels

Amid the government’s strenuous efforts to digitise the economy, the State Bank of Pakistan (SBP) has revealed significant advancements in payment ecosystems and infrastructure with 87% of all retail transactions being processed via digital channels.

In its quarterly payment systems review for the first quarter of the fiscal year 2025, the central bank on Friday said that digital channels reported a total of 1.699 billion retail transactions, while over-the-counter (OTC) channels comprised the remaining 13% amounting to 251 million transactions.

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The SBP reported a rise in digital payment value to 27% (Rs36 trillion) from 24% in Q4 FY24. OTC payments still held a significant share at 73%, with a total of Rs100 trillion. The central bank emphasized that a robust payment system provides safe, efficient, and reliable options for transferring funds, purchasing goods, and settling payments, which are essential for any country’s economy.

Raast, Pakistan’s instant payment solution, has processed 848 million transactions worth Rs19 trillion since its inception in 2022. During Q1 FY25, Raast handled 197 million transactions amounting to Rs4.7 trillion, with an average of 3 million daily transactions. By the end of the quarter, 39.5 million Raast IDs had been registered. The SBP stated that Raast enhances the efficiency of instant payments for both individuals and businesses.

Mobile banking apps played a critical role in this growth, with 1,301 million transactions worth Rs19 trillion during the quarter, reflecting an 11% increase in volume and 14% in value. The total number of users reached 96.5 million, growing by 4% from the previous quarter. E-commerce payments also saw a 29% increase, with 91% of 118 million transactions conducted via digital wallets, highlighting a shift from traditional card-based payments.

The SBP report further noted that the POS network expanded to 132,224 terminals, enabling 83 million transactions worth Rs429 billion. ATMs facilitated 243 million transactions worth Rs3.9 trillion, remaining a key cash withdrawal channel. Branchless banking agents processed payments for 693,178 merchants and supported mobile top-ups, cash deposits, and withdrawals, bridging gaps in underserved areas. These developments reflect significant progress toward digitizing Pakistan’s economy.