By Farooq Awan

Account-based payments accounted for 95% of Pakistan’s e-commerce transactions during the second quarter of fiscal year 2025-26, indicating a strong shift toward direct account and wallet-based payment methods in online commerce. According to the Payment Systems Quarterly Review for Q2 FY26, available with Wealth Pakistan, a total of 305 million e-commerce transactions were recorded during the quarter, with a combined value of Rs422 billion.

The data shows that the vast majority of these transactions were conducted directly through bank accounts or digital wallets, while only 5% were made using payment cards. The report highlights that account-based e-commerce transactions have gained a significant share within the online payments landscape. These transactions allow users to make payments directly from their bank accounts or mobile wallets without relying on card networks.

In contrast, card-based e-commerce transactions represented a much smaller portion of total online purchases. Although debit and credit cards continue to be used for online payments, their share remains limited compared to account-based methods. The growing use of account-based payments reflects changes in how consumers conduct online transactions.

These payments are supported by digital banking platforms, including mobile banking applications, internet banking portals, and electronic money institution (EMI) wallets, which provide users with multiple options to complete purchases. The report indicates that account-based payments offer an alternative to card-based transactions by enabling direct transfers between customer accounts and merchants.

This method eliminates the need for card-processing infrastructure and integrates with various digital payment channels. E-commerce transactions during the quarter included purchases made on online platforms through both domestic and international merchants. The increase in transaction volume reflects continued activity in the online retail sector, supported by digital payment options.

The dominance of account-based payments highlights the growing reliance on digital banking services for online transactions. Users are increasingly utilizing mobile apps and online platforms to make purchases, contributing to the expansion of digital commerce. Overall, the quarterly figures indicate that account-based payments have become the primary method for conducting e-commerce transactions in Pakistan, with a substantial majority of online purchases being completed through direct account or wallet transfers.

Credit: INP-WealthPk