By Farooq Awan
Something big is happening in Pakistan’s shopping scene — cash and cards are taking a back seat. More people are now paying straight from their phones and bank accounts, changing the way money moves in stores, markets, and online shops across the country. The rise of digital payments in Pakistan is reshaping how people buy and sell every day.
Record Growth in Digital Wallet Use
According to the State Bank of Pakistan’s Annual Payment Systems Review FY 2024–25, a striking 93 percent of all online shopping payments were made through digital wallets and bank accounts. Only 7 percent used debit or credit cards, showing how fast Pakistan is moving toward a cashless future.
POS Expansion Boosts Cashless Transactions
The change is easy to see in everyday life. The number of point-of-sale (POS) machines grew by 56 percent to 195,849, and more than 1.09 million merchants now accept QR-based payments. Together, these systems handled over one million transactions a day, worth PKR 2.1 trillion — an increase of 39 percent in volume and 37 percent in value from the previous year.
Soft POS Technology Helps Small Retailers
Experts credit this growth to “soft POS” technology, which turns regular smartphones into payment tools. Without the need for costly machines, small shopkeepers, food stalls, and service providers can now accept digital payments quickly and cheaply. Banks and fintech companies have made this possible by rolling out easy-to-use systems that lower costs for merchants.
Card Payments Lose Ground to QR and Wallets
Even though debit and credit cards are still growing — debit cards rose 9 percent to 53 million and credit cards climbed 8 percent to 2.2 million — they’re no longer the favorite choice. Customers now prefer QR or wallet payments because they’re instant, simple, and avoid extra charges. The State Bank has also encouraged banks to promote cheaper digital payment options, helping this change happen even faster.
Small Businesses Go Digital
For many small businesses, this has been a breakthrough year. Digital payments that once belonged only to big retail chains are now common at roadside shops and local vendors. Faster payment settlements and clear transaction histories have made it easier for merchants to apply for loans and expand their businesses.
More than 30 banks and payment service providers took part in campaigns to bring more sellers into the digital economy — a clear sign that private companies see digital payments as the future.
Economic Impact and Future Outlook
Economists say this trend could benefit Pakistan’s economy in many ways. With less cash being handled, the risks of theft and loss go down, and clearer digital records help the government improve tax collection and support formal businesses.
Another plus using local payment systems instead of foreign card networks saves the country valuable foreign exchange.
Looking ahead, the central bank expects even more progress in 2025–26. It plans to connect wallet systems with each other and give merchants new rewards for going digital. Pilot projects are already testing ways to link Raast P2M payments directly with business accounting systems, making everything faster and smoother.
SBP officials told this reporter that Pakistan aims to reach full digital payment acceptance in retail stores by 2028 — a major step toward the Digital Pakistan Vision. If current trends continue, the country’s next big shopping revolution might fit right in the palm of your hand.
Author Profile
-
Farooq Awan is a meticulous finance correspondent focused on Pakistan’s growth engines.
His reporting, driven by State Bank data, details the services sector's resilience and 3% expansion as the primary force behind GDP recovery. Awan highlights the critical role of ICT and stable policy in driving this essential economic digital transformation.
