Karachi: State Bank of Pakistan Releases Comprehensive Quarterly Report on Payment Systems

Karachi: The State Bank of Pakistan (SBP) has unveiled its detailed report on the country’s payment systems for the third quarter of the fiscal year 2023-24, highlighting a substantial shift towards digital transactions and the growing role of instant payment systems.

According to State Bank of Pakistan, the Quarterly Payment Systems Report indicates that digital transactions now constitute 83% of total retail payments, facilitated by banks and Electronic Money Institutions (EMIs). The remainder 17% of transactions were conducted Over-the-Counter at bank branches. During this period, the financial institutions processed a staggering 844 million retail payments, totaling PKR 128,470 billion. The report breaks down these transactions into various categories including funds transfers, cash withdrawals, POS and e-commerce purchases, bill payments, and more.

The growth of digital payments is also reflected in the expanding user base, with significant increases noted in the number of mobile app users and internet banking clients. By the end of the quarter, there were 59 million BB mobile app users, 17 million mobile banking app users, 11 million internet banking users, and 3 million e-wallet users registered with EMIs.

Mobile phone and internet banking have emerged as the preferred transaction channels among customers, with mobile banking transactions growing by 8% to 301 million and internet banking transactions increasing by 3% to 59 million during the quarter. The transactions processed through these channels amounted to PKR 12,955 billion and PKR 6,467 billion respectively.

The report also spotlighted Raast, Pakistan’s instant payment system, which saw a 31% increase in transaction volume and a 48% rise in value from the previous quarter, processing 140 million transactions worth PKR 3,437 billion. Additionally, the PRISM (Real-Time Gross Settlement) system settled 1.5 million transactions amounting to PKR 315,596 billion, encompassing government securities, funds transfers, and ancillary clearing transactions.