ISLAMABAD, Nov 3 (Wealth Pakistan) – Mobile banking has become the dominant force in Pakistan’s digital-finance landscape, with smartphone applications now serving as the primary financial access channel for millions of users.
Record expansion in mobile transactions
According to the Annual Payment Systems Review FY2024-25 released by the State Bank of Pakistan (SBP), mobile-banking transactions soared 52 percent year-on-year to 6.2 billion, carrying a cumulative value of PKR 97 trillion. In the previous year, users executed 4.1 billion transactions worth PKR 63 trillion. This represents the fastest expansion among all banking channels and marks a significant shift from branch-based to mobile financial behaviour.
The report highlighted that registered mobile-banking users reached 24.1 million by the end of FY2024-25, while branchless-banking app users surged to 79.2 million. Internet-banking customers also rose to 14.9 million, underscoring that digital access has moved beyond urban centres to become mainstream across the country.
Fintechs and e-wallets on the rise
Electronic-money wallets showed a sharp 56 percent rise, reaching 5.8 million active users. Electronic-Money Institutions (EMIs) processed PKR 471 billion in transactions during FY2024-25 — almost double the previous year’s value — reflecting their growing importance in reaching unbanked populations.
The SBP credited this performance to improved regulatory clarity, stronger Know Your Customer (KYC) protocols, and real-time settlement through the Raast instant-payment network. These measures have enhanced trust and accelerated adoption among low-income and first-time users.
Digital Pakistan Vision driving transformation
The central bank attributed the rapid growth to its multi-year Digital Pakistan Vision 2028, which promotes interoperability, innovation, and inclusion. Increased competition among commercial banks to offer zero-fee transactions, better mobile interfaces, and faster onboarding has further accelerated the digital shift.
Features such as push notifications, biometric logins, and instant QR payments have made mobile apps more secure and convenient. Analysts note that Pakistan’s young population — with 65 percent under the age of 35 — naturally prefers smartphone-based financial services, which are now expanding faster than traditional deposit growth in many banks.
Financial inclusion through mobile channels
SBP officials said mobile banking is transforming the economics of financial intermediation. With low infrastructure costs and automated onboarding, banks can profitably reach rural and remote customers, bridging the gap between deposits and access to credit.
Small-value transactions below PKR 10,000 recorded the fastest growth, signalling deeper everyday use of mobile platforms. Agricultural workers, students, and small vendors increasingly use wallet and app-based systems for payments, supporting inclusive economic participation.
Shift in consumer payment habits
The report also revealed that nearly 93 percent of e-commerce transactions were conducted through digital wallets or bank accounts rather than debit or credit cards. This shift reflects growing confidence in instant, low-cost digital options.
As financial-literacy initiatives and dispute-resolution systems mature, SBP expects consumer trust in mobile payments to strengthen further.
Outlook for FY2025-26
Looking ahead, the central bank projects another year of double-digit growth in mobile banking as it introduces open-API standards, enhances cybersecurity oversight, and links fintechs with the new PRISM+ and Raast systems.
Experts predict mobile transactions could exceed 10 billion annually by FY2025-26, positioning Pakistan among the fastest-growing digital-payment markets in Asia.