Mobile phones dominate Pakistan’s digital payment landscape
The use of digital payment channels in Pakistan has grown rapidly, with the State Bank of Pakistan (SBP) reporting 2.5 billion digital transactions worth more than Rs 55 trillion during the financial year 2024–25. New data shows that mobile phones now sit at the centre of this shift, as most people prefer to pay through apps on their smartphones instead of using cash or going to bank branches.
According to SBP’s latest Quarterly Report on Payment Systems, mobile app-based payments dominated the digital landscape. Customers used apps offered by banks, branchless banking (BB) providers and electronic money institutions (EMIs) to carry out 2.0 billion transactions. These accounted for around 81 percent of all digital payments and reached a total value of Rs 33.7 trillion.
This strong growth reflects how quickly Pakistani consumers and businesses are adopting digital tools for day-to-day money management, especially as smartphones and mobile internet become more common.
What people are paying for with mobile apps
SBP’s report shows that mobile apps are now being used for a wide variety of transactions. These include person-to-person (P2P) transfers between friends and family, utility and telecom bill payments, wallet top-ups and account-based payments to merchants both online and at physical shops.
Many retailers, restaurants and service providers now accept QR code or wallet-based payments, which allow customers to pay directly from their bank accounts or mobile wallets without needing cash or cards. For younger users and freelancers, app-based payments also make it easier to receive funds from clients and move money between accounts at any time of day.
As more government departments, schools and service providers go digital, the role of mobile apps is expected to grow further, making them the default channel for most everyday payments in Pakistan.
Raast instant payments continue strong momentum
The SBP report also highlights the continued expansion of the Raast Instant Payment System, which has become a key pillar of Pakistan’s digital payment infrastructure. During the first quarter of FY 2025–26, Raast person-to-person (P2P) transactions rose to 535 million, up 31 percent, with a total value of Rs 11.3 trillion.
Person-to-merchant (P2M) payments through Raast also gained pace, doubling to 4.3 million transactions worth Rs 17.0 billion. Overall, Raast processed 544 million transactions amounting to Rs 12.8 trillion in the quarter, showing strong demand for instant, low-cost transfers.
The growing use of Raast for both P2P and merchant payments suggests that more people and businesses are becoming comfortable with real-time digital transfers instead of relying on cash, cheques or conventional bank transfers that can be slower and more expensive.
Cards, ATMs and internet banking still play an important role
Alongside mobile apps and Raast, other digital payment tools continue to expand. The number of payment cards in circulation reached 61.3 million, with 90 percent of them being debit cards and around 4 percent credit cards. These are widely used for cash withdrawals at ATMs and for purchases at point-of-sale (PoS) terminals and online stores.
Point-of-sale and e-commerce activity maintained steady growth, with around 1.5 million daily card-based transactions recorded. A network of 20,527 ATMs handled 267 million transactions worth Rs 4.5 trillion across the country. On average, each ATM processed about 142 transactions per day, with an average ticket size of Rs 16,800.
Internet banking also saw steady expansion, as more customers logged in through desktops and mobile browsers to pay bills, transfer funds and manage their accounts. While mobile apps lead in volume, these channels remain important for users who prefer larger-screen interfaces or more detailed account controls.
Physical touchpoints still matter in a digital-first ecosystem
Despite the rapid shift toward mobile and online payments, physical touchpoints continue to play a key supporting role in Pakistan’s payment ecosystem. SBP data shows that 19,852 bank branches and 756,480 branchless banking agents provided over-the-counter (OTC) services such as cash deposits, withdrawals, fund transfers and bill payments.
Bank branches processed 137 million transactions worth Rs 110 trillion, while BB agents facilitated 129 million transactions amounting to Rs 0.9 trillion. These channels remain vital for customers who prefer in-person service, live in areas with weaker connectivity or are still transitioning from cash to digital methods.
Together, digital and physical channels are helping Pakistan build a more inclusive payment system. As smartphone use continues to rise and digital literacy improves, the share of mobile-based payments is likely to grow even further, but branches and agents will still act as a bridge for millions of users.
