THE State Bank of Pakistan (SBP) has released its Annual Report on Payment Systems, highlighting that fiscal year 2025-26 witnessed a strong momentum in the ongoing transformation of the payment landscape, with consumers, businesses and financial institutions increasingly embracing mobile apps, internet banking, e-money wallets, QR-based payments and other digital channels. This growth has been supported by various policy measures, improved digital infrastructure and industry-led initiatives.
The number and volume of retail payments is an indication that the prospects for realization of the goal of a cashless economy are there provided the government continues with incentives, improves/expands Internet coverage and financial institutions invest properly in developing and launching safe, secure and fault-free apps for and mechanisms for the purpose. It is heartening to note that retail payments through formal banking channels during FY26 registered a significant growth, reaching 14.3 billion transactions valued at Rs 673 trillion, representing a year-on-year growth of 58% in volume and 10% in value. E-commerce payments also continued to gain traction, with account-based online payments accounting for 96% of total e-commerce transactions conducted through banking channels. Branchless banking mobile app users increased to 99.1 million, while banks’ mobile app users reached 30.4 million, highlighting the continued shift of everyday banking activities towards smartphone-based platforms. All this shows that digital payments are gaining popularity because of their obvious advantages and the entire culture can be transformed if the government upgrades Internet infrastructure, discards the tendency of suspension of Internet services and banking channels take prompt action to address complaints of users.
