Pakistan Sees Major Shift as Digital Payments Reach 92% of Retail Transactions

Pakistan has witnessed a major transformation in the way people make payments, with digital channels accounting for 92 percent of retail payment transactions during fiscal year 2025-26.

The latest figures highlight the rapid expansion of digital banking and electronic payment services across the country as consumers and businesses increasingly move away from traditional cash-based transactions.

According to the State Bank of Pakistan’s (SBP) latest Annual Payment Systems Review, overall digital payment activity increased by 65 percent year-on-year during the fiscal year.

The number of digital transactions reached 13.2 billion in 2025-26, showing the growing role of technology in Pakistan’s financial system.

The sharp increase reflects greater use of mobile banking applications, internet banking platforms, electronic money wallets, QR-based payments and other digital financial services.

Mobile banking has become an increasingly important part of everyday financial activity. Customers can now transfer money, pay bills and make purchases through smartphones without needing to visit a bank branch.

Internet banking has also contributed to the shift, particularly among customers who use online platforms for account management, transfers and payments.

E-money wallets and QR payment systems have further expanded access to digital transactions. These services allow consumers and merchants to conduct payments through mobile devices, making electronic payments more accessible across different segments of society.

The 92 percent share of retail transactions conducted through digital channels represents a significant change in Pakistan’s payment landscape.

The growth also reflects increasing acceptance of digital payment infrastructure among merchants and consumers. Businesses are increasingly able to accept electronic payments through QR codes, mobile wallets and other payment solutions.

For consumers, digital payments can offer greater convenience by reducing the need to carry cash. Electronic transactions can also provide users with digital records of their payments and transfers.

The rapid expansion of digital payments is also important for Pakistan’s broader financial inclusion efforts. Digital financial services can help bring more people into the formal financial system by making basic payment and banking services easier to access.

The State Bank of Pakistan has continued to encourage the development of digital payment infrastructure and electronic financial services as part of the country’s transition toward a more technology-driven financial system.

The latest data indicates that this transition is gaining momentum. A 65 percent annual increase in digital payment transactions demonstrates how quickly consumer and business payment habits are changing.

However, continued growth will also depend on reliable digital infrastructure, cybersecurity, consumer awareness and confidence in electronic financial services.

Banks, fintech companies and payment service providers are expected to play an important role in expanding digital payment options and improving the experience for users.

The latest figures from the SBP suggest that digital payments are no longer a limited alternative to cash in Pakistan. They have become a major part of the country’s retail payment system.

With billions of digital transactions now being processed annually, Pakistan’s payment sector is increasingly moving toward a more connected and technology-driven financial environment.