ISLAMABAD: Digital Transactions have witnessed sustainable growth during the fiscal year 2022-23 due to the enhanced customer interest in mobile and internet banking.
According to the annual Payment Systems Review for the fiscal year 2022-23 released by the State Bank of Pakistan (SBP) on Thursday, the review presented growth and trends in banking transactions along with the usage of payment systems’ infrastructure and instruments in the country.
As per the review, the continued growth trajectory in digital transaction was attributed to the increased consumers’ preference for digital channels of mobile and internet banking for tackling their financial activities. During the period, mobile and internet banking transactions recorded an annual growth of 57% by volume and 81% by value. In addition, e-banking transactions through Banks and Microfinance Banks (MFBs) went up by 29% whereas value enhanced by 21% during the prescribed period.
During the fiscal year 2022-23, the number of e-banking users also witnessed a significant increase. There was an increase of 15% in internet banking users, 30% in mobile banking users, and 42% in BB mobile app users. Moreover, Electronic Money Institutions (EMIs) played their part as well to the inclusion of digital banking users by opening over 2 million e-wallets since their inception.
Digital Transactions Attracting Customers
The e-banking is attracting more customers due to its effective and instant payment solutions. In contrast, paper-based transactions have been decreased by over 4% during FY23 and by 20% in the last five years. However, the value of paper-based transactions up by 20% in FY23.
The Real-Time Gross Settlement (RTGS) system of Pakistan and Raast-Pakistan’s Instant Payment System, owned and operated by SBP, assists financial institutions and banking customers in processing and settling transactions. During the year, RTGS treated 4.9 million transactions amounting to PKR 640.4 trillion, whereas 155 million transactions were managed on Raast amounting to PKR 3.2 trillion during this fiscal year.
Financial institutions are also strengthening their e-banking infrastructure by expanding Point-of-Sale (POS) terminals, Cash/Cheque Deposit Machines (CDMs), Automated Teller Machines (ATMs), e-commerce merchants and agents’ network to fulfill customers’ requirements. As of June 30, 2023, there were 115,288 POS terminals, 17,808 ATMs, 520 CDMs and 6,889 e-commerce merchants for providing payment services to the customers. During the fiscal year, the number of transactions through POS (199.3 million) and ATMs (809.7 million) grew annually by 45% and 17% respectively. Domestic e-commerce transactions using payment cards were 31.8 million which amounted to PKR 142 billion during the fiscal year.
As of June 30, 2023, there were 58.1 million payment cards in circulation of which 44.5 million were issued by banks and MFBs, 10.8 million by branchless banks, and 2.8 million by EMIs.
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