Pakistan digital payments reached a new high in Q3 FY26, with 3.7 billion transactions worth Rs168.8 trillion flowing through formal banking and payment channels in just one quarter. This represents a quarterly growth of 9% by volume and 1% by value compared to the previous quarter. The numbers come from the State Bank of Pakistan’s official Q3 FY26 Payment Systems Review, covering January to March 2026. So which rails are actually moving money, and where are the gaps?
How Pakistan Digital Payments Break Down by Channel
Not all of those 3.7 billion transactions travel the same road. The SBP groups them into digital channels and traditional over-the-counter (OTC) channels. The split tells an interesting story.
Digital Channels: 92% of All Transactions
Digital payment channels processed 3.4 billion transactions, accounting for 92% of total retail payments by volume. These channels include mobile banking apps and wallets, internet banking portals, USSD, ATMs, POS machines, e-commerce platforms, and call/IVR banking. The value of these transactions reached Rs68.3 trillion, up from Rs64.4 trillion in the previous quarter.
That means digital rails carry almost all the volume of Pakistan digital payments. But look at value: Rs68.3 trillion out of Rs168.8 trillion is only about 40%. The remaining 60% of money still flows through traditional bank branches. Volume and value tell very different stories here.
Mobile Banking Apps: The Clear Frontrunner
Mobile banking apps and e-money wallets remained the dominant driver of digital payments. During the quarter, 2.89 billion transactions amounting to Rs41.67 trillion were conducted through banking apps and wallets offered by banks, branchless banking providers, and EMIs.
Mobile app-based payments accounted for 78% of all digital payments. That is a huge share. Apps from branchless banking players, commercial banks, and electronic money institutions (EMIs) are clearly the channel ordinary Pakistanis trust most for day-to-day money movement. The ease of sending money from your phone, paying bills, and topping up accounts has driven this adoption fast.
Raast: Growing Fast, Still Room to Scale
Pakistan’s instant payment system, Raast, keeps posting strong numbers. During the quarter, Raast processed 742.1 million transactions with a total value of Rs23.3 trillion.
Raast P2P transactions increased to 664 million, amounting to Rs18.88 trillion, up from 603 million transactions worth Rs15.69 trillion in the previous quarter. That is a solid jump in just three months.
The merchant side is picking up speed too. Person-to-person payments through Raast increased by 10%, reaching 664 million transactions. Meanwhile, person-to-merchant payments recorded even stronger growth, rising from 36.3 million transactions to 55.9 million, indicating increasing acceptance of digital payments among businesses.
Person-to-merchant services continued to expand, with more than 2.6 million merchants onboarded by the quarter’s end. Getting merchants to accept Raast QR codes is one of the harder problems in Pakistan’s payments journey, so this growth is encouraging.
ATMs: High Volume, High Cash Use
During the quarter, customers executed 277.5 million transactions at ATMs, amounting to Rs5.2 trillion, predominantly for cash withdrawals. The average ticket size of cash withdrawal at an ATM was Rs17,500 per transaction, which has risen from Rs18,700 in the same quarter last year.
ATMs sit inside the digital channels bucket in the SBP classification because they use electronic infrastructure. But their primary use is still cash withdrawal. This is a reminder that moving people from card-to-ATM to card-to-merchant is still an unfinished task.
POS Terminals: Steady but Small
POS acquiring institutions, with their 217,042 registered POS merchants, processed 143.2 million transactions amounting to Rs0.8 trillion during the quarter, with quarter-on-quarter growth of 5% and 6% respectively.
POS growth is consistent but the absolute numbers remain modest. Rs0.8 trillion against Rs168.8 trillion total tells you card-at-merchant is still a small slice of Pakistan digital payments. High merchant fees, unreliable connectivity, and consumer habits all slow wider adoption.
One bright spot: QR code-based merchant payments grew 41% quarter-on-quarter to 87.3 million transactions, while their value surged 63% to Rs0.5 trillion, indicating wider merchant acceptance of digital payment solutions. QR is cheaper and easier for small shops than a physical POS terminal, and the data shows it is catching on.
E-Commerce: Small but Growing
Card-based e-commerce transactions showed consistent growth, reaching 16.4 million transactions, up by 3%, amounting to Rs0.08 trillion. Online shopping payments are rising, though the base is still small relative to the overall Pakistan digital payments picture.
Bank Branches: Low Volume, Giant Value
Traditional bank branches handle a tiny share of transactions by count but a massive share of money. Traditional bank branches processed 128 million transactions valued at Rs99.5 trillion, while banking agents facilitated 155 million transactions amounting to Rs1.1 trillion.
That Rs99.5 trillion through branches explains why the value share of digital channels sits at only 40%. Big business payments, corporate transfers, and large-value settlements still go through branches. This is not necessarily a problem; it reflects the nature of high-value banking. But it does mean the Rs168.8 trillion headline figure should not be read as all digital.
What the Numbers Actually Mean
The SBP data shows two Pakistans running in parallel. There is a fast-growing digital layer driven by mobile apps, Raast, and QR codes, handling billions of small everyday transactions. Then there is a traditional layer in bank branches handling fewer transactions but enormous sums of money.
The latest figures reflect Pakistan’s ongoing transition toward a digital economy, supported by expanding financial technology services, wider smartphone adoption, and government efforts to promote electronic payments. Analysts say continued growth of digital transactions could enhance financial inclusion, improve transparency, and reduce reliance on cash across the economy.
The lag areas are clear. POS at physical merchants is growing slowly. E-commerce payments are small. And cash is still king for daily spending, especially in informal markets and smaller towns. Cash remains the dominant medium for daily transactions, particularly among small traders and informal workers, who cite high transaction fees, unreliable networks, and lack of digital literacy as deterrents.
Pakistan’s debt burden also puts pressure on the pace of infrastructure investment needed to deepen these networks. Read our earlier coverage of how Pakistan’s federal debt hit Rs82 trillion for context on the fiscal environment shaping such public investment.
Large-Value Settlement: PRISM+ in the Background
Behind all retail payments sits the large-value settlement layer. During Q3 FY26, PRISM+ processed 1.5 million transactions amounting to Rs389.8 trillion, showing a quarterly growth of 5.5% by value. This is the backbone infrastructure that settles interbank transfers and government securities, largely invisible to consumers but critical to the whole system working.
Frequently Asked Questions
How many transactions did Pakistan process in Q3 FY26?
3.7 billion retail payments amounting to Rs168.8 trillion were performed through formal banking and payment channels during the quarter.
Which payment channel is the biggest in Pakistan?
Mobile app-based payments led the digital segment, with 2.9 billion transactions worth Rs42 trillion, making up 78% of all digital payments. Banking apps from branchless banking providers, commercial banks, and EMIs drive most of the volume.
How many transactions did Raast handle in Q3 FY26?
Raast processed 742 million transactions amounting to Rs23.27 trillion during the quarter, highlighting its increasing adoption in Pakistan’s digital payment ecosystem. Its P2M merchant side saw especially fast growth, jumping from 36.3 million to 55.9 million transactions in one quarter.
Why does Pakistan digital payments value look low despite huge volumes?
Because high-value transactions still happen at bank branches. Bank branches processed 128 million transactions valued at Rs99.5 trillion, which is far more money per transaction than any digital channel. Digital channels carry 92% of transactions but only about 40% of total value, because most digital payments are small everyday transfers, bill payments, and purchases.
