Digital channels now account for an overwhelming 92% of retail transactions in Pakistan, underscoring a rapid shift toward a cashless economy driven by mobile apps and real-time payment systems.

According to the State Bank of Pakistan, 3.4 billion retail transactions were recorded during the second quarter of FY26, with 92% conducted through digital platforms, up from 88% a year earlier. The total value of these transactions reached Rs167 trillion, marking quarterly increases of 8% in volume and 7% in value.

Digital payments alone accounted for 3.1 billion transactions worth Rs64 trillion. Mobile app-based payments dominated the landscape, contributing 2.6 billion transactions-around 83% of all digital activity-valued at Rs40 trillion. These transactions supported a range of services, including peer-to-peer transfers, bill payments and merchant transactions.

The central bank's report also highlighted strong growth in internet banking, with transaction volumes rising by 11% and value increasing by 22%. Meanwhile, the Raast instant payment system processed 645.7 million transactions worth Rs18.5 trillion during the quarter, with person-to-person payments accounting for the majority.

Raast's bulk payment service also gained traction, handling over 9 million transactions valued at Rs2.6 trillion for government and corporate users. Card usage expanded as well, with 66.7 million cards in circulation, predominantly debit cards.

Despite the surge in digital adoption, traditional banking infrastructure remained active. A network of nearly 21,000 ATMs processed 277 million transactions worth Rs4.9 trillion, while bank branches and agents facilitated hundreds of millions of over-the-counter transactions.

The data reflects a broad-based transition towards digital financial services, with increased adoption across consumers, businesses and government entities, pointing to a more integrated and technology-driven payments ecosystem.