By Farooq Awan

Mobile banking applications and digital wallets processed 2.6 billion transactions during the second quarter of fiscal year 2025-26, emerging as the leading channel driving Pakistan’s digital payment ecosystem. According to the Payment Systems Quarterly Review for Q2 FY26, available with Wealth Pakistan, mobile-based transactions formed the largest share within digital payment channels, both in terms of volume and value.

These transactions accounted for a significant portion of the 3.1 billion payments conducted through digital platforms during the quarter. In value terms, mobile banking apps and wallets processed transactions worth Rs40 trillion, representing 62% of the total value of digital payments recorded during the period. These transactions included payments made to individuals, businesses, and government entities, as well as purchases conducted at online and physical retail outlets.

The report highlights that mobile banking platforms are increasingly used for a wide range of financial activities, including fund transfers, bill payments, merchant payments, and other account-based transactions. The convenience and accessibility of mobile applications have enabled users to carry out financial operations without visiting physical banking locations. Data from the review shows continued growth in the number of mobile banking users.

As of December 2025, the number of users registered on mobile banking applications reached over 126 million, reflecting a steady increase in adoption of digital financial services across the country. The expansion of branchless banking applications has also contributed to this growth. Branchless banking mobile app users increased to over 92 million, indicating the growing reach of digital financial services in areas beyond traditional banking networks.

In addition, users of electronic money institution (EMI) wallets rose to around 6.8 million during the same period. The report indicates that mobile banking apps are integrated with various payment systems, enabling users to transfer funds, pay utility bills, purchase goods and services, and access other financial services through a single platform.

These applications are supported by banks, microfinance banks, and EMIs, which continue to expand their digital offerings. The rising use of mobile apps is also linked to broader developments in the payment ecosystem, including increased availability of internet services, growth in smartphone usage, and improvements in digital payment infrastructure.

These factors have contributed to higher transaction volumes through mobile channels. In comparison to other digital channels such as internet banking portals, ATMs, and POS machines, mobile applications recorded the highest number of transactions during the quarter. This indicates a shift in user preference toward app-based banking services for routine financial activities.

The quarterly data shows that mobile banking apps and wallets have become a central component of Pakistan’s payment system, supporting a large share of retail transactions and facilitating access to financial services through digital means.

Credit: INP-WealthPk