Pakistan’s move towards cashless payments is growing fast. In the first quarter of fiscal year 2026 (January to March), digital channels handled 92% of all retail transactions processed through formal banking and payment systems. This is according to the State Bank of Pakistan’s (SBP) latest Quarterly Report on Payment Systems.
The report shows 3.7 billion retail transactions worth Rs 168.8 trillion were completed through formal channels during this period. Retail transaction volume rose by 9% from the previous quarter. Out of these, digital payments reached 3.4 billion transactions valued at Rs 68 trillion.
Mobile app-based payments led the way with 2.9 billion transactions worth Rs 42 trillion. These apps, offered by banks, branchless banking players, and electronic money institutions, made up 78% of all digital payments. They covered person-to-person transfers, bill payments, and merchant payments at shops and online stores. Internet banking also grew, with transaction value up by 19%.
The Raast Instant Payment System processed 742.1 million transactions worth Rs23.3 trillion. Person-to-person transfers on Raast increased by 10%, while person-to-merchant payments also rose sharply. Traditional over-the-counter services at bank branches and agents still handled some cash transactions, but their share is shrinking.
This strong growth reflects Pakistan’s continued progress in digital finance. More people are using mobile apps and instant payment systems for daily needs, making the economy more formal and convenient.