Farooq Awan

Mobile banking applications emerged as the backbone of Pakistan’s digital payment ecosystem during the first quarter of FY26, processing the bulk of electronic transactions and driving record growth in overall payment volumes, according to the State Bank of Pakistan’s Payment Systems Review.

The central bank reported that mobile banking apps processed around 2.0 billion transactions during the quarter, accounting for 81% of all payments through digital channels. The rapid uptake of app-based financial services has positioned mobile platforms as the dominant channel for everyday transactions, ranging from fund transfers to bill payments and merchant purchases.

The number of mobile banking users continued to expand, reaching approximately 120 million registered users during the quarter. This growth reflects increasing smartphone penetration, improved internet connectivity, and rising consumer confidence in digital financial services. The report noted that mobile apps have become the preferred medium for financial activity due to their convenience, speed, and round-the-clock accessibility.

In value terms, mobile banking transactions accounted for Rs33.7 trillion, highlighting the growing reliance on app-based platforms not only for small-value payments but also for high-value financial transfers. The data indicates that customers are increasingly comfortable conducting larger transactions through mobile applications, signalling greater trust in digital security frameworks.

The State Bank observed that the rapid expansion of mobile banking has been supported by continuous improvements in application design, enhanced cybersecurity measures, and broader integration with other payment systems. Banks and financial institutions have invested heavily in upgrading their digital infrastructure to ensure reliability and seamless user experiences.

The review also noted that mobile banking has played a crucial role in expanding financial inclusion by enabling individuals in remote and underserved areas to access formal financial services. With mobile connectivity reaching deeper into rural regions, app-based banking has reduced reliance on physical branches and lowered barriers to entry for new users.

According to the report, the widespread adoption of mobile banking apps has contributed significantly to the overall growth of Pakistan’s digital payments ecosystem. The increasing use of smartphones for financial transactions has also encouraged innovation among service providers, leading to the introduction of new features and services tailored to evolving customer needs.

Credit: INP-WealthPk