- State Bank says online banking users are seeing a 25% increase.
- With an increase of 62%, 1,346 million transactions worth Rs 70 trillion were recorded.
- Customers make 2,697 million payments via mobile app wallets.
KARACHI: In a rather positive development on the economic indicators front, the share of digital payments in the country witnessed a notable increase of 8% to 84% – from the previous 76% – in the financial year 2024 (FY24). , News reported on Saturday.
Data released by the State Bank of Pakistan (SBP) shows that the volume and value of retail payments in the country increased by 35%.
In its annual review of payment systems for the fiscal year 24, the central bank attributed the expansion of digital payments to the growing number of users of digital channels, thanks to the ease and diversity of products offered through mobile banking applications, online banking portals, and mobile wallets.
“The increasing share of digital payments is mainly related to the increasing number of customers using digital channels due to convenience and wide range of products/services offered through these channels,” the report said.
It is worth noting that users of mobile banking applications increased by 16%, users of online banking services by 25%, while the number of mobile application wallet users for branchless banking increased by 2%, and e-wallet users increased by a staggering 85% annually. During fiscal year 24.
Digital payments made through mobile banking apps and online banking portals collectively saw a 62% increase in transactions to 1,346 million, with the value of these transactions rising by 74% to Rp70 trillion, the report said. Likewise, mobile app-based wallets saw significant growth, with customers making 2,697 million payments through their BB mobile app wallets and 85 million through e-wallets for EMIs.
The expansion of the point-of-sale network also contributed to growth, as the number of point-of-sale devices increased by 8.9% to 125,593, supporting card-based transactions at an increasing number of retail outlets and stores.
E-commerce payments have also seen a notable shift, with 87% of e-commerce digital payments now being initiated through bank accounts or digital wallets. A total of 309 million e-commerce payments were made during FY24, with a transaction value of Rs 406 billion.
Transactions via Real-Time Gross Settlement (RTGS) saw a significant rise in FY24, with their volume rising from 4.9 million to 5.8 million. The main contribution to RTGS transactions came from settlement of government securities, followed by inter-bank transfers, customer transfers to third parties and additional clearing settlement, respectively.
During FY24, a total of 496.1 million transactions worth Rs11.6 trillion were processed through Raast, Pakistan’s instant payment system, the report said. Last year in FY23, the number of transactions reached 147.2 million transactions worth Rs 3.1 trillion.
Payment system infrastructure – which refers to the systems, applications, technologies and networks that facilitate the transfer of money between individuals, businesses and governments – plays a key role in a country’s economy because it enables efficient and secure money transfers between individuals, businesses, the government and financial institutions, according to the report.
It includes everything from payment card processing networks and digital payment platforms to traditional banks and mobile payment solutions. A strong payments infrastructure is essential to accelerating financial inclusion and economic development.