Digital financial services have fundamentally reshaped how people spend money in Pakistan as electronic transactions now account for 92 percent of all retail payments. Data released by the central bank for the second quarter of the 2026 fiscal year shows a significant shift away from traditional cash-based habits. Out of 3.4 billion total retail transactions recorded between October and December, a staggering 3.1 billion were processed through digital channels. This represents a noticeable jump from the 88 percent share recorded during the same period in the previous year, highlighting a rapidly maturing fintech ecosystem.

The sheer volume of money moving through these systems is equally impressive, with the total value of retail transactions reaching 167 trillion rupees. While the number of transactions grew by eight percent compared to the previous quarter, the actual monetary value saw a seven percent increase. Mobile apps have become the preferred tool for the vast majority of users, handling roughly 83 percent of all digital activity. These platforms, managed by banks and branchless banking providers, processed 2.6 billion transactions worth 40 trillion rupees for everything from utility bills to peer-to-peer transfers.

Internet banking is also seeing a steady climb as more consumers move their financial management online. During the final quarter of 2025, the volume of internet banking transactions rose by 11 percent while the total value jumped by 22 percent. This growth suggests that while mobile apps handle the bulk of frequent, smaller payments, web-based portals remain a vital tool for larger or more complex financial needs. The infrastructure supporting these digital moves continues to expand as retail outlets and online platforms integrate more electronic payment options into their daily operations.

The Raast instant payment system has played a pivotal role in this transformation by providing a fast and reliable backbone for real-time transfers. It processed over 645 million transactions during the quarter, with person-to-person transfers making up the largest slice of that activity. Beyond individual users, government agencies and large corporations are also adopting the system for bulk payments, moving 2.6 trillion rupees through the specialized bulk service. Modern payment terminals at physical stores and e-commerce websites are now handling approximately 1.7 million card-based transactions every single day across the country.

Despite this massive digital surge, traditional banking infrastructure still maintains a presence for those who need physical services. A network of nearly 21,000 ATMs handled 277 million transactions worth 4.9 trillion rupees as people still require cash for certain segments of the economy. Additionally, over 20,000 bank branches and more than 760,000 banking agents continue to offer over-the-counter services like deposits and bill payments. As the digital share continues to climb each year, the central bank expects these electronic platforms to eventually become the universal standard for all commercial activity in the country.