The Nation's Payment System Demonstrates Strong Growth
By
March 15, 2024
Pakistan’s payment system saw strong growth in the second quarter of this fiscal year (FY24), thanks to improvements in the Real-time Gross Settlement System (RTGS) and the Raast faster payment system.
During this period, digital transactions accounted for 82% of retail transactions, a slight increase from the previous quarter. However, in terms of value, only 15% of retail payments were made through digital channels, with 85% still happening over the counter.
Several trends emerged during this period. The use of mobile apps and internet banking saw a significant rise, constituting 50% of total digital transactions. Mobile banking users reached 16 million, with transactions valued at Rs 11.2 trillion, while internet banking transactions totaled Rs 5.4 trillion.
Raast’s usage also increased, with over 107 million transactions amounting to more than Rs 2 trillion processed during the quarter. E-wallets issued by Electronic Money Institutions (EMIs) gained popularity, especially among youth and freelancers, with 2.7 million registered users.
Additionally, e-commerce transactions grew by 13%, indicating a shift towards digital channels. Despite these advancements, over-the-counter transactions still dominated, comprising 85% of overall retail transactions.
Efforts are underway to further promote digital payments, including the introduction of free Raast and QR-based payments. The government aims to modernize the payment ecosystem and increase financial inclusion through these initiatives.
