Latest news with #QuarterlyPaymentSystemsReview
Business Recorder
10 hours ago
- Business
- Business Recorder
Digital payments thriving in Pakistan: Q3 sees 2bn transactions: SBP
KARACHI: Digital payments continued to show robust growth, reaching 2 billion transactions and accounting for 89 percent of total retail payments during the third quarter of FY25. The State Bank of Pakistan (SBP) on Wednesday released its Quarterly Payment Systems Review for Q3 FY25, providing summary on the payment systems, and presenting notable changes in the digital payment landscape of the country. The digital payments in the country continued its upward trajectory during Q3-FY25, with substantial increase in transactional volume and value. Digital payments crossed 2 billion mark this quarter, with its share reaching to 89 percent in total retail payments. Digital payments: Pakistan PM forms three high-powered panels Whereas, 267 million transactions were processed on Over-the-Counter (OTC) channels, accounting for the remaining 11 percent share in retail payments. In terms of value of transactions, digital payments accounted for only 29 percent or Rs 48 trillion of the retail payments, while 71 percent Rs 117 trillion were made through OTC channels including banks branches and branchless banking agents. Retail payment volumes climbed 12 percent to reach 2,408 million transactions, while the overall transaction value grew by 8 percent to Rs 164 trillion. Further, number of transactions through digital channels accounted for 89 percent of all retail transactions. Mobile app-based platforms, including mobile banking apps, branchless banking (BB) wallets, and e-money wallets, collectively processed 1,686 million transactions valuing Rs 27 trillion, reflecting a 16 percent growth in volume and a 22 percent surge in value. Users of these apps conveniently transfer funds and pay bills without the need of going to a bank branch or an agent. The number of banks' mobile app banking users have increased to 22.6 million up by 7 percent, while users of mobile app-based wallets of BBs and EMIs have increased to 68.5 million rose by 6 percent and 5.3 million, up by 12 respectively during the quarter. The number of users of digital banking services also witnessed a steady rise. Mobile banking app users grew to 22.6 million, up by 7 percent, e-Money and BB wallet users increased to 5.3 million, up by 12percent and 68.5 million increased by 6percent respectively, while with 7 percent growth, internet banking users reached 14.1 million. E-commerce payments increased by 40percent in volume to 213 million and 34percent by value to PKR 258 billion, as compared to the previous quarter. Digital wallets were the largest contributor in e-commerce payments i.e. 94percent (199.1 million) by value, while card-based online payments accounted only 6percent (13.5 million) only. For in-store purchases, 140,861 merchants processed 99 million (up 12percent) transactions of PKR 550 billion (up by 8percent) using a network of 179,383 point-of-sales terminals. Further, merchants accepting QR codes also processed 21.7 million transactions valued at PKR 61 billion. The SBP operated payment systems, Raast (Instant Payment System) and RTGS (Real-time Gross Settlement System) have been instrumental in accelerating digital payments. Raast processed 371 million transactions worth PKR 8.5 trillion during the quarter, bringing cumulative volumes since launch to 1.5 billion in volume and more than PKR 34 trillion in value. Large-value payments via RTGS handled 1.5 million large-value payments amounting PKR 347 trillion. The shift towards a digital economy is well-supported by SBP's strategic initiatives as well as the concerted efforts of banks, fintechs, and payment service providers. As digital payments expand, the SBP remains dedicated to promoting financial inclusion and improving payment efficiency for all stakeholders. Copyright Business Recorder, 2025
Business Recorder
15 hours ago
- Business
- Business Recorder
Digital payments thriving: Q3 sees 2bn transactions: SBP
KARACHI: Digital payments continued to show robust growth, reaching 2 billion transactions and accounting for 89 percent of total retail payments during the third quarter of FY25. The State Bank of Pakistan (SBP) on Wednesday released its Quarterly Payment Systems Review for Q3 FY25, providing summary on the payment systems, and presenting notable changes in the digital payment landscape of the country. The digital payments in the country continued its upward trajectory during Q3-FY25, with substantial increase in transactional volume and value. Digital payments crossed 2 billion mark this quarter, with its share reaching to 89 percent in total retail payments. Digital payments: Pakistan PM forms three high-powered panels Whereas, 267 million transactions were processed on Over-the-Counter (OTC) channels, accounting for the remaining 11 percent share in retail payments. In terms of value of transactions, digital payments accounted for only 29 percent or Rs 48 trillion of the retail payments, while 71 percent Rs 117 trillion were made through OTC channels including banks branches and branchless banking agents. Retail payment volumes climbed 12 percent to reach 2,408 million transactions, while the overall transaction value grew by 8 percent to Rs 164 trillion. Further, number of transactions through digital channels accounted for 89 percent of all retail transactions. Mobile app-based platforms, including mobile banking apps, branchless banking (BB) wallets, and e-money wallets, collectively processed 1,686 million transactions valuing Rs 27 trillion, reflecting a 16 percent growth in volume and a 22 percent surge in value. Users of these apps conveniently transfer funds and pay bills without the need of going to a bank branch or an agent. The number of banks' mobile app banking users have increased to 22.6 million up by 7 percent, while users of mobile app-based wallets of BBs and EMIs have increased to 68.5 million rose by 6 percent and 5.3 million, up by 12 respectively during the quarter. The number of users of digital banking services also witnessed a steady rise. Mobile banking app users grew to 22.6 million, up by 7 percent, e-Money and BB wallet users increased to 5.3 million, up by 12percent and 68.5 million increased by 6percent respectively, while with 7 percent growth, internet banking users reached 14.1 million. E-commerce payments increased by 40percent in volume to 213 million and 34percent by value to PKR 258 billion, as compared to the previous quarter. Digital wallets were the largest contributor in e-commerce payments i.e. 94percent (199.1 million) by value, while card-based online payments accounted only 6percent (13.5 million) only. For in-store purchases, 140,861 merchants processed 99 million (up 12percent) transactions of PKR 550 billion (up by 8percent) using a network of 179,383 point-of-sales terminals. Further, merchants accepting QR codes also processed 21.7 million transactions valued at PKR 61 billion. The SBP operated payment systems, Raast (Instant Payment System) and RTGS (Real-time Gross Settlement System) have been instrumental in accelerating digital payments. Raast processed 371 million transactions worth PKR 8.5 trillion during the quarter, bringing cumulative volumes since launch to 1.5 billion in volume and more than PKR 34 trillion in value. Large-value payments via RTGS handled 1.5 million large-value payments amounting PKR 347 trillion. The shift towards a digital economy is well-supported by SBP's strategic initiatives as well as the concerted efforts of banks, fintechs, and payment service providers. As digital payments expand, the SBP remains dedicated to promoting financial inclusion and improving payment efficiency for all stakeholders. Copyright Business Recorder, 2025
Express Tribune
17 hours ago
- Business
- Express Tribune
High-value transactions stay cash-based: SBP
High-value transactions in Pakistan continue to rely significantly on paper-based and over-the-counter (OTC) methods, indicating issues of trust or accessibility in digital high-value channels. While 89% of Pakistan's retail payments are now conducted through digital channels, they represent just 29% of the total transaction value — Rs48 trillion out of Rs164 trillion — according to the State Bank of Pakistan (SBP)'s latest Payment Systems Quarterly Review. In stark contrast, OTC payments processed through bank branches and branchless banking agents, though only 11% by volume, account for a dominant 71% share in value. This disparity highlights a key challenge in the country's digital transition: high-value transactions continue to rely heavily on cash and paper-based methods, suggesting ongoing trust, usability, or accessibility concerns in digital channels for large payments. The SBP has released its Quarterly Payment Systems Review for Q3FY25, summarising trends in payment systems and presenting notable changes in the country's digital payment landscape. Digital payments in the country continued their upward trajectory during Q3FY25, with substantial increases in transaction volume and value. Retail payment volumes climbed 12% to reach 2,408 million transactions, while the overall transaction value grew by 8% to Rs164 trillion. Digital channels accounted for 89% of all retail transactions. Mobile app-based platforms — including mobile banking apps, branchless banking (BB) wallets, and e-money wallets — collectively processed 1,686 million transactions worth Rs27 trillion, reflecting a 16% growth in volume and a 22% surge in value. The number of users of digital banking services also witnessed a steady rise. Mobile banking app users grew to 22.6 million (up by 7%), e-money and BB wallet users increased to 5.3 million (up by 12%) and 68.5 million (up by 6%) respectively, while internet banking users reached 14.1 million (up by 7%). Internet banking, despite a growing user base of 14.1 million, showed only marginal growth in transaction value, suggesting limited use beyond basic fund transfers. Meanwhile, call centre and Interactive Voice Response (IVR)-based banking has become virtually obsolete, raising concerns about service accessibility for digitally marginalised populations. Credit card usage remains limited, with only 4% of the 57.5 million cards in circulation being credit cards. E-commerce payments increased by 40% in volume to 213 million and by 34% in value to Rs258 billion compared to the previous quarter. Digital wallets were the largest contributors to e-commerce payments — 94% (199.1 million) by volume — while card-based online payments accounted for only 6% (13.5 million). For in-store purchases, 140,861 merchants processed 99 million (up 12%) transactions worth Rs550 billion (up 8%) using a network of 179,383 point-of-sale terminals. Additionally, merchants accepting QR codes processed 21.7 million transactions valued at Rs61 billion. SBP-operated payment systems, Raast (Instant Payment System) and RTGS (Real-time Gross Settlement System), have been instrumental in accelerating digital payments. Raast processed 371 million transactions worth Rs8.5 trillion during the quarter, bringing cumulative volumes since its launch to 1.5 billion transactions and more than Rs34 trillion in value. Large-value payments via RTGS handled 1.5 million transactions amounting to Rs347 trillion. Although Raast has seen strong growth in person-to-person (P2P) transfers, with transactions rising to 368 million, its person-to-merchant (P2M) component remains underutilised. Only 1.5 million P2M transactions worth Rs4.5 billion were recorded, despite onboarding over 770,000 merchants. This points to weak adoption of QR and account-based payments at retail points. The shift towards a digital economy is well-supported by SBP's strategic initiatives, as well as the concerted efforts of banks, fintechs, and payment service providers, SBP stated. As digital payments expand, SBP remains committed to promoting financial inclusion and improving payment efficiency for all stakeholders. Experts say the persistent dependence on cash, underdeveloped credit infrastructure, geographic disparities in digital access, and low interoperability across platforms are key hurdles to realising the full potential of digital financial inclusion in Pakistan.
Express Tribune
29-03-2025
- Business
- Express Tribune
Shift towards electronic payments increases
Listen to article The State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Review for the second quarter (Oct-Dec) of financial year 2024-25, which reflects notable changes in digital payments. The report highlights that the digital payment landscape in Pakistan is becoming stronger, with an increase in transactions during 2QFY25. Retail transactions registered an increase of 11% in volume, reaching 2,143 million, while their value rose by 12% to Rs154 trillion. The growth in value was primarily driven by mobile banking app payments, internet banking payments and over-the-counter (OTC) transactions at bank branches. The report stated that digital payment channels now account for 88% of all retail transactions by volume, mirroring an increasing shift towards electronic payments, with mobile app-based banking playing a crucial role. These platforms which include mobile banking apps, branchless banking (BB) wallets and e-money wallets collectively processed 1,450 million transactions worth Rs24 trillion, marking a 12% increase in volume and 28% increase in value. The number of users leveraging digital banking services also saw a steady rise. Mobile banking app users grew to 21 million (7%), e-money and BB wallet users increased to 4.7 million (13%) and 64.3 million (7%), respectively, while internet banking users reached 13.3 million (7%). Furthermore, merchant payments through digital means also expanded during the second quarter. Digital e-commerce transactions increased by 30% in volume to 152 million, amounting to Rs193 billion (32%). By volume, 8% (12.8 million) of the e-commerce transactions were made through cards, 92% (139.5 million) through digital wallets/accounts, while by value, this share was 33% and 67%, respectively.
