Is Pakistan Leading the Charge Towards a Cashless Economy?

Article Highlights
Off On

Digital payments have become the dominant method for retail transactions in Pakistan, with 88% of the transactions now conducted through digital channels such as mobile banking apps, BB wallets, and e-money wallets. The State Bank of Pakistan (SBP) reported a significant rise in digital payments, with 1,450 million transactions amounting to Rs. 24 trillion, indicating a 12% increase in volume and a 28% rise in value.

The number of users of digital channels continues to grow, with mobile banking app users reaching 21 million, e-money users at 4.7 million, and BB wallet users rising to 64.3 million. Internet banking users increased to 13.3 million. E-commerce transactions also saw notable growth, with a 30% increase in volume to 152 million, amounting to Rs. 193 billion. Remarkably, 92% of these e-commerce transactions were conducted through digital wallets or accounts.

In addition, in-store purchases via POS-enabled merchants totaled Rs. 510 billion. SBP’s payment systems, Raast and RTGS, have been instrumental, with Raast executing 296 million transactions worth Rs. 6.4 trillion. RTGS handled large-value transactions totaling Rs. 330 trillion, demonstrating a 19% increase in value.

Overall, retail transactions grew by 11% in volume to 2,143 million, with their value increasing by 12% to Rs. 154 trillion. The main drivers of this growth include mobile banking payments, internet banking transfers, and over-the-counter banking transactions.

Pakistan’s shift to a digital economy is largely influenced by SBP’s strategic initiatives, along with the efforts of banks, fintech firms, and payment service providers. The SBP remains steadfast in promoting financial inclusion and boosting payment efficiency, reflecting the significant growth and improvements in the digital payment sector. The ongoing transition is evident in the Quarterly Payment Systems Review Q2-FY25, showcasing the evolving financial landscape in Pakistan.

Explore more

How is Telenor Transforming Data for an AI-Driven Future?

In today’s rapidly evolving technological landscape, companies are compelled to adapt novel strategies to remain competitive and innovative. A prime example of this is Telenor’s commitment to revolutionizing its data architecture to power AI-driven business operations. This transformation is fueled by the company’s AI First initiative, which underscores AI as an integral component of its operational framework. As Telenor endeavors

How Are AI-Powered Lakehouses Transforming Data Architecture?

In an era where artificial intelligence is increasingly pivotal for business innovation, enterprises are actively seeking advanced data architectures to support AI applications effectively. Traditional rigid and siloed data systems pose significant challenges that hinder breakthroughs in large language models and AI frameworks. As a consequence, organizations are witnessing a transformative shift towards AI-powered lakehouse architectures that promise to unify

6G Networks to Transform Connectivity With Intelligent Sensing

As the fifth generation of wireless networks continues to serve as the backbone for global communication, the leap to sixth-generation (6G) technology is already on the horizon, promising profound transformations. However, 6G is not merely the progression to faster speeds or greater bandwidth; it represents a paradigm shift to connectivity enriched by intelligent sensing. Imagine networks that do not just

AI-Driven 5G Networks: Boosting Efficiency with Sionna Kit

The continuing evolution of wireless communication has ushered in an era where optimizing network efficiency is paramount for handling increasing complexities and user demands. AI-RAN (artificial intelligence radio access networks) has emerged as a transformative force in this landscape, offering promising avenues for enhancing the performance and capabilities of 5G networks. The integration of AI-driven algorithms in real-time presents ample

How Are Private 5G Networks Transforming Emergency Services?

The integration of private 5G networks into the framework of emergency services represents a pivotal evolution in the realm of critical communications, enhancing the ability of first responders to execute their duties with unprecedented efficacy. In a landscape shaped by post-9/11 security imperatives, the necessity for rapid, reliable, and secure communication channels is paramount for law enforcement, firefighting, and emergency