KARACHI: Digital payments have experienced a remarkable growth, capturing an impressive 84 percent market share during the last fiscal year (FY24). This growth has been primarily fueled by the increasing availability and widespread adoption of various digital payment channels.
The State Bank of Pakistan (SBP) on Friday released its annual Payment System Review highlighting the significant advancements in the national payment ecosystem during FY24. The report underscores the remarkable growth in digital payments reflecting a growing reliance on these systems by customers across the country.
The report showcases the ongoing transformation of Pakistan’s payment landscape towards digital payments. The retail payments have seen extraordinary growth in FY24, with the volume of transactions rising from 4.7 billion to 6.4 billion, and the value of these transactions increasing from Rs 403 trillion to Rs 547 trillion a growth of around 35 percent in both volume and value. Importantly, the share of digital payments by volume has surged from 76 percent in FY23 to 84 percent in FY24.
Mobile banking apps and internet banking portals have been instrumental in driving the growth of digital payments by offering customers seamless, convenient access to a wide range of banking services 24/7. During FY24, payments through these channels have collectively increased by 62 percent to 1,345.9 million with value increasing by 74 percent to Rs 69.8 trillion. Similarly, mobile app-based wallets experienced substantial growth, with customers making 2,697 million payments through their BB mobile app wallets and 85 million through EMIs’ e-wallets.
This expansion is attributed to the growing number of digital channel users, facilitated by the convenience and variety of products offered through mobile banking apps, internet banking portals, and mobile wallets. Notably, mobile app banking users increased by 16%, internet banking users by 25%, while Branchless Banking (BB) mobile app wallet users grew by 2%, and e-wallet users by an impressive 85% annually during FY24.
Copyright Business Recorder, 2024
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