Digital payment transactions up 29pc to Rs231trln

KARACHI: Transactions value and volume of digital payments – settled through real-time gross settlement system – rose 29 percent to Rs231.7 trillion and 21 percent to 930,501, respectively, during the last fiscal year of 2015/16, the central bank data showed on Saturday.

“Payment systems witnessed a consistent upward trend in volume and value through digital/electronic channels, which compliment the SBP’s vision to promote digital payments in the country,” the State Bank of Pakistan (SBP) said in its annual payment systems review.

The review said the volume of paper-based transactions decreased six percent during the last fiscal year, but they still constitute approximately 38 percent of the volume of total retail payments. E-banking transactions increased 16 percent in volume and four percent in value.  Real-time online banking transaction volume rose 19 percent to 135.4 million and its value inched up two percent to Rs32.3 trillion during the last fiscal year.  

The use of alternate delivery channels, such as auto teller machines (ATMs), point of sale (POS) terminals and internet and mobile banking also showed rising trend. Total 39.2 million transactions, valuing approximately Rs200 billion, were carried out at POS terminals as compared to 32.1 million transactions, valuing Rs172 billion during the previous fiscal year.

Internet and mobile banking also showed steady growth. The internet banking rose 18 percent in volume and 10 percent in value, whereas mobile banking showed an increase of eight percent in volume and five in value during the period under review.

Payment system infrastructure also showed phenomenal growth during the last fiscal year.  “The SBP is working on a two-pronged strategy for effectively enabling the adoption of electronic/digital payments,’ the review said.

“Firstly, the expansion of infrastructure at three different levels: instruments (like cards and wallets), access points (like ATMs, POSs, and mobile devices) and central payment processers (like switches and gateways).

Secondly, the strengthening of regulatory and oversight frameworks for ensuring the safety and soundness of these payment infrastructures which, in turn, will enhance the trust and confidence of ordinary consumers on these alternate payment methods.”