Pakistan’s move toward a cashless economy gained further momentum in the second quarter of FY26, as digital platforms made up 92% of all retail transactions—an increase from 88% during the same period last year, according to the State Bank of Pakistan.
Based on SBP’s Quarterly Report on Payment Systems covering October to December 2025, a total of 3.4 billion retail transactions were recorded, with the overwhelming majority conducted عبر digital channels.
Compared to the previous quarter, retail transaction volume rose by 8%, while their total value grew by 7%, reaching Rs167 trillion.
The report, released on Thursday, outlines major trends in both low-value (retail) and high-value (RTGS) payments processed through formal banking systems.
Digital payment activity climbed to 3.1 billion transactions, with a combined value of Rs64 trillion, highlighting the increasing reliance on electronic payment methods.
Mobile app-based payments remained the leading contributor, totaling 2.6 billion transactions via platforms offered by branchless banking providers, banks, and EMIs.
These transactions represented 83% of all digital payments and were valued at Rs40 trillion, facilitating services such as peer-to-peer transfers, bill payments, and merchant transactions across online and in-store channels.
Internet banking also showed solid growth, with transaction volume rising by 11% and value increasing by 22%.
The Raast Instant Payment System continued its strong performance, handling 645.7 million transactions worth Rs18.5 trillion. Person-to-Person (P2P) payments reached 603 million, marking a 13% increase, with a value of Rs15.7 trillion.
Meanwhile, Raast P2M transactions grew to 33.6 million, totaling Rs167.6 billion.
The Raast Bulk Service was increasingly used by government entities and businesses, processing over 9 million transactions worth Rs2.6 trillion.
The number of payment cards in circulation increased to 66.7 million, with debit cards making up 87% and credit cards accounting for just 5%.
Card usage at point-of-sale terminals and in e-commerce continued to rise, with about 1.7 million transactions conducted daily.
Across the country, 20,976 ATMs processed 277 million transactions amounting to Rs4.9 trillion during the quarter.
Additionally, 20,143 bank branches and 763,262 banking agents delivered over-the-counter services, including deposits, withdrawals, transfers, and bill payments. Bank branches handled 138 million transactions worth Rs102 trillion, while agents facilitated 135 million transactions totaling Rs0.9 trillion.
These developments highlight Pakistan’s steady progress toward a more inclusive, efficient, and digitally driven payments ecosystem.
