Digital payments hit 2.8b transactions in Q1FY26: SBP
The SBP reported a 92% increase in transactions processed through Raast, totalling 41.27 million, with the transaction value growing by 56% to Rs903 billion quarter-on-quarter by the end of March 2023. Photo: afp
The State Bank of Pakistan (SBP) has released its Quarterly Report on Payment Systems, highlighting growth in digital transactions and continued expansion of the country's payment ecosystem during the first quarter of fiscal year 2025-26.
According to an official statement issued on Tuesday, total payment volumes increased to 2.8 billion transactions in the quarter, reflecting a 10% rise over the previous quarter. The value of retail payments reached Rs166 trillion, marking a 6% quarterly increase, largely driven by growing use of mobile app-based banking.
Digital payment channels accounted for 2.5 billion transactions, representing 90% of total retail payments, compared with 87% in the same quarter last year. The value of transactions conducted through digital channels stood at Rs55 trillion, indicating broader adoption of digital payments across the economy.
Mobile app-based payments continued to dominate the digital landscape. A total of 2.0 billion transactions were conducted through mobile applications offered by banks, branchless banking providers and electronic money institutions. These transactions accounted for 81% of all digital payments and amounted to Rs33.7 trillion in value.
The SBP noted that mobile apps are widely used for person-to-person transfers, bill payments, and account- and wallet-based merchant payments across online platforms and physical retail outlets.
Internet banking also recorded steady growth, with a rising number of users conducting transactions through online channels. The number of payment cards in circulation increased to 61.3 million, of which 90% were debit cards and 4% were credit cards.
The Raast Instant Payment System maintained strong growth momentum during the quarter. Person-to-person transactions through Raast rose to 535 million, showing an increase of 31%, with a total value of Rs11.3 trillion. Person-to-merchant transactions through Raast doubled to 4.3 million, with a value of Rs17.0 billion. Overall, Raast processed 544 million transactions amounting to Rs12.8 trillion during the quarter. Point-of-sale terminals and e-commerce activity also continued to expand, with an average of 1.5 million daily card-based transactions recorded. Across the country, a network of 20,527 ATMs facilitated 267 million transactions worth Rs4.5 trillion.