Digital Payments Now Make Up 89% of Retail Transactions in Pakistan

We can’t deny that the current fiscal year has been quite eventful for Pakistan (in a good way). The State Bank of Pakistan (SBP) has also reported continued growth in the country’s digital payments landscape, with a 12% increase in retail transaction volumes and an 8% rise in value during the third quarter of FY25.

Mobile apps, including banking apps and e-wallets, processed 1.7 billion transactions worth PKR 27 trillion; up 16% in volume and 22% in value.

The Rise of Digital Payments Over Cash 

Not long ago, most people in Pakistan relied heavily on cash. However, things have changed fast. In just the last year, digital payments have become the go-to method for shopping, bill payments and even small day-to-day purchases.

E-commerce payments saw robust growth, increasing by 40 per cent in volume to 213 million and by 34 percent in value to PKR 258 billion. In-store POS transactions reached 99 million, worth PKR 550 billion, processed by over 140,000 merchants. QR code payments also grew, with 21.7 million transactions totalling PKR 61 billion.

Here’s what’s making Pakistan go digital:

1. Most digital transactions (Raast processed 371 million transactions worth Rs8.5 trillion) were made using mobile banking apps. From checking balances to transferring money or paying bills, these apps have made life easier and more efficient.
2. Services like Easypaisa, JazzCash, SadaPay and Raast have become household names. They now serve over 22.6 million users, making banking accessible even in remote areas. Even platforms like Google Wallet have entered Pakistan, which is boosting the economy even more.
3. The central bank credited the growth to its digital finance strategy and collaborative efforts by banks, fintech, and payment providers, reaffirming its commitment to financial inclusion and payment system efficiency.

Formalisation of Money is Still a Challenge

Of course, it’s not all perfect. Some areas still struggle with internet issues, and not everyone is comfortable trusting digital platforms due to security concerns (many Pakistanis still doubt the authenticity of digital payments). But with ongoing awareness campaigns and better tech, things are improving.

With digital payments already at 89%, it looks like Pakistan could soon hit 90% or more. As more people start using tap-to-pay options, shopping online, and switching to digital wallets, cash might soon become a rare sight in daily life.