Retail payments surge 38% in FY25 as Pakistan embraces digital banking: SBP

KARACHI: The State Bank of Pakistan (SBP), in its Annual Review of Payment Systems, reported that retail payment volumes grew by 38% during fiscal year 2024–25, driven by the strong adoption of digital channels, which now account for 88% of all retail transactions.

According to the SBP, the Raast instant payment platform recorded more than a twofold increase in both transaction volume and value, while PRISM+, the upgraded real-time gross settlement (RTGS) system used primarily for large-value payments, also posted double-digit growth during the year.

The central bank attributed this rapid expansion to regulatory initiatives, the growing digital infrastructure, and increased consumer adoption of mobile and internet-based banking platforms.

During FY25, retail payments reached 9.1 billion transactions worth Rs 612 trillion, marking annual growth of 38% in volume and 12% in value, the review revealed.

The review observed continued steady momentum of digital channels in FY25 as Pakistani’s increasingly embraced mobile apps, internet banking, and e-money wallets and payments through digital channels accounted for 88% of all retail transactions, growing from 78% in FY23 and 85% in FY24.

Mobile banking apps led the growth, processing over 6.2 billion transactions, a 52% increase from the previous year. Internet banking portals handled 297 million transactions, up 33%, while e-money wallets—though still a smaller segment—showed the fastest growth, with both transaction volume and value doubling during the year.

The review highlighted that Raast has become a cornerstone of Pakistan’s digital payment ecosystem.

Its Person-to-Merchant (P2M) services are driving financial inclusion, reducing dependency on expensive infrastructure, enabling faster settlements, and promoting a transparent digital trail that supports access to formal financial services.

The point-of-sale network expanded to 195,849 terminals across 159,284 merchant locations, enabling nearly one million daily card payments, compared to 0.7 million in last fiscal year.

At the same time, e-commerce payments continue to show inclination towards account and wallet-based channels, which represented 93% of online transactions, the Review informed.

The ATM network also grew by more than 7% to 20,341 machines, with each handling an average of 140 transactions on a daily basis.