The digital wallet revolution is sweeping across Pakistan, with a staggering 93% of online purchases now being made through e-wallets! This dramatic shift in consumer behavior has left many wondering about the future of traditional payment methods.
But here's the eye-opener: The State Bank of Pakistan's Payment Systems Review for FY25 reveals that e-wallet dominance is on the rise. In FY24, 87% of online purchases were already made using digital wallets, and this number has climbed even higher. With 684 million e-commerce transactions executed through e-wallets in FY25, it's clear that this payment method is the new norm.
And the growth doesn't stop there! Retail payments are booming, with 9.1 billion transactions totaling PKR 612 trillion in the last year. This represents a substantial increase of 38% and 12% respectively compared to the previous year. The convenience of digital channels is undeniable, with 88% of retail payments now occurring online, up from 78% in FY23 and 85% in FY24.
But what about the good old payment cards? Well, they're not going extinct just yet. Debit cards, in particular, still dominate the payment card landscape, accounting for 77% of card usage. Interestingly, card-based payments at POS terminals and e-commerce platforms have shown resilience, growing by approximately 41% year-on-year. This growth is evident in the 415 million transactions at POS terminals and 111 million on e-commerce platforms during FY25, compared to FY24's figures of 287 million and 78 million, respectively.
POS terminals have been instrumental in this digital payment revolution, processing an average of one million transactions daily. These terminals facilitated 378 million transactions worth PKR 2.1 trillion in FY25, showcasing impressive growth. Additionally, QR-based acceptance is gaining popularity, with 1 million merchants now equipped to accept digital payments. Over 86 million QR code transactions, valued at PKR 234 billion, demonstrate the convenience and cost-effectiveness of this method.
Mobile banking apps and internet banking are also riding the wave of digital transformation. Mobile app-based banking processed 6.2 billion transactions worth PKR 97.0 trillion, while internet banking handled 0.3 billion transactions valued at PKR 39.2 trillion. Year-on-year growth for mobile apps and internet banking stands at a remarkable 52% and 33%, respectively.
So, is this the end of the road for traditional payment methods? Or will they find a way to coexist with the digital revolution? The numbers suggest a clear trend, but the future remains unwritten. What do you think? Are we witnessing the inevitable rise of digital payments, or is there room for a comeback story?
