The State Bank of Pakistan (SBP) released its Annual Report on Payment Systems FY26 on Tuesday, informing that retail payments through formal banking channels grew 58% to reach 14.3 billion transactions, of which 13.2 billion were conducted through digital channels.
Retail payments via formal banking channels grow 58% in FY26 with widespread adoption of digital transactions
KARACHI, Oct 06 (APP): The State Bank of Pakistan (SBP) released its Annual Report on Payment Systems FY26 on Tuesday, informing that retail payments through formal banking channels grew 58% to reach 14.3 billion transactions, of which 13.2 billion were conducted through digital channels.
Providing an overview of the key trends, developments, innovations, and financial transactions shaping the country’s formal payment ecosystem during Jul 01, 2025, to Jun 30, 2026, the SBP report highlighted the continued expansion of Pakistan’s payments landscape and the growing role of digital channels in everyday financial transactions conducted through formal banking and payment channels, said a statement issued here.
The Report stated that retail payments through formal banking channels during FY26 registered significant growth, reaching 14.3 billion transactions valued at Rs 673 trillion, representing year-on-year growth of 58% in volume and 10% in value.
Out of 14.3 billion transactions conducted through formal banking channels, 13.2 billion transactions were conducted through digital channels, representing year-on-year growth of 65%, it said and added that the trend reflected continued traction of digital channels in everyday payments.
Attributing the growth to various policy measures, improved digital infrastructure, and industry-led initiatives, it reported that fiscal year 2025-26 witnessed 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.
The share of digital channels in total retail payment transactions surged to 92%, up from 88% in FY25; Mobile phone-based solutions led digital transactions with over 11.1 billion transactions, registering 79% growth, while internet banking portals processed 0.3 billion transactions, up 15% from the previous fiscal year.
The growth was also supported by the expansion of digital acceptance infrastructure at merchants’ or retailers’ outlets as the POS network expanded to 337,791 terminals across 295,367 merchant locations, supporting nearly 1.5 million daily card payments compared to 1.0 million in the previous fiscal year.
E-commerce payments also continued to gain traction, with account-based online payments accounting for 96 percent 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.
According to the Report, the introduction of PRISM+ in August 2025 was a major development in payment infrastructure, marking the transition of the RTGS system to the ISO 20022 standard. With the implementation of the new PRISM+ system, Pakistan joins the league of countries with both wholesale and retail (Instant Payment System) built on ISO 20022.
