Pakistan Digital Payments Experience 35% Growth in FY24

In recent years, Pakistan has witnessed a remarkable transformation in its financial landscape, particularly in the realm of digital payments. The State Bank of Pakistan (SBP) has unveiled an impressive report indicating a 35% growth in digital payments during the fiscal year 2024 (FY24). This surge reflects a significant shift in how people in Pakistan are conducting their financial transactions, moving away from traditional methods to more modern, digital solutions.

According to the Annual Payment Systems Review released by the SBP, the total volume of digital transactions escalated from Rs4.7 billion in FY23 to Rs6.4 billion in FY24. This increase is not just in the number of transactions but also in their value, which soared to Rs547 trillion, up from Rs403 trillion the previous year. The report highlights that the share of digital payments by volume has jumped from 76% in FY23 to an impressive 84% in FY24. This indicates a growing acceptance and reliance on digital financial services across the nation.

The driving force behind this growth can be attributed to the widespread adoption of mobile banking apps, internet banking, and e-wallets. Notably, mobile banking and internet banking transactions experienced a staggering 62% increase, with their total value rising by 74% to PKR 70 trillion. This trend is largely fueled by an expanding user base, with mobile app users increasing by 16%, internet banking users by 25%, and e-wallet users skyrocketing by 85%. Such statistics underscore the increasing comfort and trust that the public is placing in digital financial tools.

Moreover, the report sheds light on the expanding payment infrastructure in Pakistan. The number of Point of Sale (POS) machines has grown by 8.9%, reaching a total of 125,593 units nationwide. This growth in infrastructure is crucial as it facilitates easier access to digital payment options for consumers and businesses alike. E-commerce is also thriving, with 87% of transactions now initiated through bank accounts or digital wallets, amounting to a substantial PKR 406 billion.

SBP has emphasized the resilience and strength of Pakistan’s payment system, stating, “Pakistan is positioning itself as a leader in digital financial services within the region.” This assertion reflects the central bank's commitment to fostering innovation and the continued development of the digital payments ecosystem, which is essential for promoting financial inclusion.

The surge in digital payments in Pakistan is not just a statistic; it represents a significant cultural shift towards embracing technology in everyday financial transactions. As more people adopt digital solutions, the potential for economic growth and financial inclusion becomes even more promising. The future of Pakistan's financial landscape looks bright, and it is clear that digital payments will play a pivotal role in shaping the economy for years to come.