January 01, 2024 (MLN): Pakistan, an emerging economy, is witnessing a remarkable growth in the digitalization of its payment systems, a testament to the nation's forward-thinking approach, said a press release issued by the State Bank of Pakistan (SBP).

The emergence of digital onboarding, Raast (instant payment system), Real-Time Gross Settlement (RTGS), and fintechs, have brought convenience and easily accessible banking to individuals and businesses.

Pakistan has undergone a transformative shift, moving from traditional models to embracing innovative technologies, paving the way for a more progressive financial landscape.

These advancements are revolutionizing payments in Pakistan, making them instantaneous and transparent.

This leap forward is not just about technology, it's also about building more trust and efficiency in the financial system.

In the first quarter of FY24, retail transactions increased by 4.2% in volume and 22.4% in value.

Among total retail transactions (processed by Banks, MFBs and EMIs), 80% are Digital, while only 20% are Over the Counter (OTC) transactions.

The total number of ATMs reached to 18,117 while POS machines have increased to 118,444 by the end of the quarter in review.

The number of E-Commerce Merchants registered with Banks & MFBs expanded from 6,889 to 7,310 during the quarter.

Moreover, internet banking users increased by 6.8% to 10.3 million while Mobile Phone Banking users by 6.0% reaching to 17m.

The central bank said that the number of Digital Wallets registered with EMIs and Branchless Banking (BB) service providers increased by 18.1% to 2.4 m (E-Wallets) and by 6.1% to 61.3m(MWallets) respectively.

As of quarter end, the total number of issued Payment Cards stood at 54.3m, with Debit Cards (74%) being the most commonly used by customers.

Alongside the 17,768 Bank Branches, there are 640,953 BB Agents specifically catering to the rural and underserved areas.

Large-Value transactions processed through RTGS grew by 15% by volume during the quarter while by value, it increased by 9%.

Currency in Circulation (CiC) in the country has declined from Rs9.5 trillion to Rs8.288tr to during the quarter.

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Posted on: 2024-01-01T17:02:41+05:00