Farooq Awan

Pakistan’s point-of-sale (POS) payment infrastructure continued to expand during the first quarter of FY26, with transaction volumes and values posting steady growth as digital payments gained wider acceptance across retail and service sectors, according to the State Bank of Pakistan’s Payment Systems Review.

The central bank reported that POS terminals across the country processed over 122 million transactions during the quarter, marking a 14 percent increase compared to the previous quarter. The total value of these transactions reached approximately Rs620 billion, reflecting growing consumer reliance on card-based payments for day-to-day purchases.

The number of POS terminals installed nationwide rose to 220,532, indicating sustained efforts by banks and payment service providers to expand acceptance infrastructure. The increase in terminal deployment has enabled more merchants, particularly in urban and semi-urban areas, to accept electronic payments, reducing dependence on cash transactions.

According to the review, the growth in POS usage was driven largely by rising card penetration and improved customer confidence in electronic payment methods. Debit cards continued to dominate transaction volumes, supported by their widespread issuance and ease of use for everyday retail purchases.

The report highlighted that the expansion of POS infrastructure has been particularly significant in sectors such as retail, hospitality and fuel stations, where electronic payments are increasingly preferred for convenience and security. The availability of POS terminals has also encouraged smaller businesses to integrate digital payment options into their operations.

The State Bank noted that the rising use of POS terminals reflects broader progress in Pakistan’s digital payments ecosystem, as consumers increasingly shift from cash to card-based transactions. Improved transaction speeds, enhanced security features and wider merchant acceptance have contributed to this transition.

The central bank further observed that sustained growth in POS transactions supports greater transparency in economic activity and helps strengthen the formal financial system. As more businesses adopt digital payment acceptance, the overall efficiency of retail transactions continues to improve.

According to the review, continued investment in payment infrastructure and merchant onboarding is expected to further expand POS usage in the coming quarters. The central bank emphasized that strengthening acceptance networks remains a key component of its strategy to promote cashless transactions and deepen financial inclusion across the country.

Credit: INP-WealthPk