ISLAMABAD: Digital payments are rapidly gaining popularity across Pakistan, with the State Bank of Pakistan reporting significant growth in digital transactions during the financial year 2025-26.
The central bank’s annual Payment Systems Review showed a 58% increase in retail payment volume, with the total value of retail payments reaching Rs673 trillion during the financial year.
Formal banking channels recorded 14.3 billion retail transactions during 2025-26, of which digital channels accounted for 13.2 billion, highlighting a growing preference for electronic payment methods.
The share of digital channels in total retail payments rose to 92% during the year. Digital payment volume also increased 65% year-on-year, compared with an 88% share recorded in financial year 2024-25.
Mobile-based payments recorded particularly strong growth, with mobile phone-based transactions exceeding 11.1 billion — a 79% annual increase.
Internet banking also grew, with 300 million transactions completed during the financial year, up 15% from the previous year, the State Bank said.
The country’s payment infrastructure expanded during the period. Point-of-sale terminals reached 337,791 across Pakistan, installed at 295,367 merchant locations. Daily card payments through POS terminals rose to about 1.5 million from nearly 1 million previously.
Account-based payments represented 96% of e-commerce payments processed through banking channels. Branchless banking mobile app users reached 99.1 million, while bank mobile app users stood at 30.4 million.
The State Bank said smartphone use is rapidly increasing in everyday banking activities.
