Pakistan’s payments landscape continued to move away from cash during the second quarter of FY26, as digital channels handled the vast majority of retail activity, according to data released by the State Bank of Pakistan.
The central bank’s quarterly report on payment systems, covering October to December 2025, showed that 3.4 billion retail transactions were carried out during the period. Of these, 92 percent were processed through digital platforms, compared with 88 percent in the same quarter last year. The steady rise reflects broader adoption of mobile and online payment options across households and businesses.
Overall transaction activity also picked up. The number of retail payments rose 8 percent from the previous quarter, while their total value increased 7 percent to Rs167 trillion. Digital payments alone accounted for 3.1 billion transactions, valued at Rs64 trillion, signalling growing confidence in non-cash methods.
Mobile applications remained the dominant channel. Around 2.6 billion transactions were completed through apps offered by banks, branchless banking providers and electronic money institutions. These made up 83 percent of all digital payments, with a combined value of Rs40 trillion. Services ranged from person-to-person transfers to bill payments and merchant purchases, both online and at physical outlets.
Internet banking also showed solid growth, with transaction volume rising 11 percent and value increasing 22 percent during the quarter.
A key driver of this shift was the Raast Instant Payment System, which continued to expand its reach. It processed 645.7 million transactions worth Rs18.5 trillion. Person-to-person transfers dominated activity, while merchant payments and bulk payments by government and corporates also recorded noticeable uptake.
Payment cards and infrastructure saw continued expansion as well. The number of cards in circulation reached 66.7 million, while thousands of ATMs, point-of-sale terminals and banking agents supported both digital and cash-based services across the country.
Taken together, the data points to a gradual but clear shift towards a more digital and interconnected payments system in Pakistan, with users increasingly relying on faster and more accessible channels for everyday transactions.
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