Digital payments dominate Pakistan’s retail transactions with 92% share

October 06, 2026 (MLN): Pakistan’s payment ecosystem recorded significant expansion during fiscal year 2025-26, with digital channels accounting for the overwhelming majority of retail transactions, according to the State Bank of Pakistan’s (SBP) Annual Report on Payment Systems.

Retail payments conducted through formal banking channels reached 14.3 billion transactions during FY26, with a combined value of Rs673tr. Transaction volume increased 58% year-on-year, while the value of payments rose 10%.

Digital payment channels remained the key driver of growth, with 13.2 billion transactions conducted digitally during the fiscal year, representing a 65% increase from the previous year. Digital channels accounted for 92% of total retail payment transactions, compared with 88% in FY25.

Mobile phone-based payment solutions led the digital segment, processing more than 11.1bn transactions, up 79% year-on-year. Internet banking portals handled around 0.3bn transactions, recording 15% growth over the previous fiscal year.

The expansion of digital payment infrastructure also continued, with the point-of-sale (POS) network growing to 337,791 terminals across 295,367 merchant locations. These terminals facilitated nearly 1.5 million card payments per day, compared with around 1.0 million daily payments in the previous fiscal year.

E-commerce payments also showed continued adoption, with account-based online payments making up 96% of total e-commerce transactions conducted through banking channels.

The shift toward smartphone-based financial services was further reflected in user growth. Branchless banking mobile app users increased to 99.1m, while the number of users of banks’ mobile applications reached 30.4m during FY26.

Meanwhile, Pakistan’s payment infrastructure underwent a major technological upgrade with the launch of PRISM+ in August 2025. The upgraded real-time gross settlement (RTGS) platform marked the transition to the ISO 20022 standard, aimed at enhancing the efficiency, transparency, and security of payment processing across retail and large-value segments.

With PRISM+, Pakistan now has both its wholesale payment infrastructure and retail Instant Payment System built on the ISO 20022 standard.

The SBP said it remains focused on developing secure, efficient, and inclusive payment systems while strengthening the country’s financial infrastructure in line with technological developments and international practices, alongside maintaining public trust, resilience, and stability.

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