Digital transactions sustained growth during FY22-23: SBP

KARACHI: The State Bank of Pakistan (SBP) on Wednesday revealed that digital transactions continued its growth trajectory owing to the increased consumers’ preference for digital channels of mobile and internet banking for meeting their financial needs, ARY News reported.

Annual Payment Systems Review for the fiscal year 2022-23 was released by the State Bank of Pakistan (SBP).

The review presents growth and trends in banking transactions accompanied by the usage of payment systems’ infrastructure and instruments in the country.

Overall, mobile and internet banking transactions witnessed an annual growth of 57% by volume and 81% by value. Further, e-banking transactions through Banks and Microfinance Banks (MFBs) grew by 29% while value increased by 21% during the year.

A similar growth pattern was also observed in Branchless Banking (BBs) transactions with number of transactions increasing by 28% and value by 45% during FY23.

Number of e-banking users also increased significantly. The year saw an increase of 15% in internet banking users, 30% in mobile banking users and 42% in BB mobile app users.

Electronic Money Institutions (EMIs) also contributed meaningfully to the inclusion of digital banking users by opening more than 2 million e-wallets since their inception.

The e-banking attracted more customers due to its efficient and instant payment solutions, and its transactions are growing at a steady pace over the years. In contrast, paper-based transactions have declined by more than 4% during FY23 and cumulatively around 20% in last five years. However, value of paper-based transactions increased by 20% in FY23.