By Farooq Awan

Pakistan's instant payment system, Raast, continued to expand during the third quarter of FY2025-26, processing 742 million transactions worth Rs23.27 trillion as both person-to-person transfers and merchant payments gained momentum, according to the State Bank of Pakistan's Payment Systems Quarterly Review.

The report shows that Raast processed 742 million transactions amounting to Rs23.27 trillion during January-March 2026, highlighting the increasing adoption of the central bank's instant payment platform across the country's digital payments ecosystem.

Person-to-person (P2P) transfers continued to account for the largest share of Raast activity. During the quarter, P2P transactions increased to 664 million, worth Rs18.88 trillion, compared with 603 million transactions, worth Rs15.69 trillion, in the previous quarter. Meanwhile, Raast's person-to-merchant (P2M) services also continued to expand, with more than 2.6 million merchants onboarded or registered with payment aliases by the end of March.

The growth in Raast reflects Pakistan's broader transition towards digital payments as consumers increasingly use mobile banking applications and digital wallets for routine financial transactions. The platform enables individuals and businesses to transfer funds instantly at any time, reducing dependence on cash and traditional payment methods.

According to the report, digital payment channels processed 3.4 billion retail transactions, accounting for 92% of all retail payments by volume during the quarter. These channels, including mobile banking applications, digital wallets, internet banking, ATMs, point-of-sale terminals and e-commerce platforms, handled transactions worth Rs68.3 trillion, up from Rs64.4 trillion in the previous quarter.

A rapidly growing digital user base has supported the expansion of Raast. By the end of March 2026, branchless banking mobile app users had reached 95.8 million, banking mobile app users 28.9 million, EMI wallet users 7.3 million, while internet banking registrations stood at 16.2 million. Collectively, more than 132 million mobile banking and digital wallet registrations were recorded, representing a 37% increase over March 2025. Approximately 49% of Pakistan's 268 million bank accounts are now linked to a mobile banking application or digital wallet.

The report attributes the continued growth in digital payments to sustained policy initiatives, regulatory reforms and technological advancements. Increasing smartphone penetration, wider merchant acceptance, the expansion of QR-based payments and growing consumer confidence in secure digital financial services have all contributed to the rapid adoption of electronic payments across the country.

Overall, the continued expansion of Raast underscores its growing role in Pakistan's payment infrastructure. Rising transaction volumes, stronger merchant participation and a rapidly expanding digital user base indicate that instant digital payments are becoming an increasingly integral part of the country's financial ecosystem.

Credit: INP-WealthPk