11-06-2025 
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A review by the State Bank of Pakistan has shown that digital payments accounted for 88% of all retail transactions in the past 12 months, up from 78% in 2023 and 85% in 2024.
Mobile banking apps led the surge, accounting for 6.2 billion of 9.1 billion total transactions. This amounted to an increase of 52% on the previous year. For comparison, internet banking portals processed 297 million transactions, a 33% increase on the previous year.
Encouragingly, digital channels have also been embraced by typically cash-reliant sectors. One of these is the cattle industry, which saw a year-on-year increase of 396% in the volume of transactions and a 731% increase in raw value.
“This progress marks a significant milestone in the digitization of traditionally cash-reliant sectors, contributing to a more inclusive, efficient and secure financial ecosystem,” reads the report. “The momentum further reinforces SBP’s unwavering commitment to fostering financial innovation and expanding digital access across Pakistan.”
One of the single biggest beneficiaries (and enablers) has been Raast, the country’s internet payments platform. Raast saw its transaction count and value more than double in the previous year. Since its creation, Raast has processed 1.9 billion transactions worth Rs44.3 trillion (US$157 billion).
“Raast emerged as the primary impetus fuelling Pakistan’s digital payments transformation, serving as the backbone of a faster, more inclusive, and interconnected financial ecosystem.”
The figures will be seen as a positive reflection of Pakistan’s commitment to overhauling its digital infrastructure, in which Raast no doubt plays a large role. The report notes that a majority of banks in the country have integrated Raast’s bulk payment feature for corporate disbursements and salary payments, which it says has improved efficiency and reduced processing time.The report notes that in the previous year, POS terminals grew 56% to 195,849, while the number of QR-enabled merchants doubled to around 1.1 million. Daily card payments across the year reached nearly one million, up from 0.7 million the previous year.
“The transformation was supported by significant strengthening of the underlying infrastructure, which provided a solid foundation for sustained growth and operational efficiency,” reads the State Bank’s press release.
However, the report also shows that Pakistan’s cash economy remains resilient despite what it calls “growing consumer trust in electronic money institutions as a potential key driver of inclusion and adoption.” The number of ATMs in the country grew from 18,957 to 20,341 in the past year, and 98% of the transactions processed using these facilities were cash withdrawals, suggesting a sticky cash economy.
Nonetheless, the report strikes an upbeat note:
“State Bank of Pakistan has reaffirmed its commitment to foster secure, efficient and inclusive payment systems, ensuring that the country’s financial infrastructure continues to evolve in line with global innovations, while maintaining public trust and resilience.”
Read the full Annual Payment Systems Review FY2025 here.
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