Pakistan’s retail payments ecosystem is undergoing a rapid transformation. What once was dominated by cash and over-the-counter banking is now tilting decisively toward digital payments including wallets, instant-payment rails, and QR/POS acceptance. For both online and physical merchants staying ahead of these conversions is no longer optional it’s necessary. Businesses that adopt a trusted payment gateway or payment solutions company like AssanPay can streamline payment flows, simplify payment transactions, and manage pay transactions efficiently. Digital payment trends in Pakistan are heavily influenced by regulatory frameworks like SBP’s digital banking push.

So, below we outline the latest trends or collected data from FY25, State Bank of Pakistan and explain what they mean for merchants who want to prosper in Pakistan’s cashless-first economy with reliable business pay solutions.

1. Digital Payments Are Now Mainstream  88–89% of Retail Transactions

For the reporting fiscal year 2025, in Pakistan digital payment channels handled approximately 88% of all retail payment transactions by volume, an increase from 85% in FY24 and 78% in FY23. These ratios have been increasing lately. In Q3 FY25 alone, Pakistan’s retail payment transactions increased by 12% year-on-year to 2,408 million, with a total value of PKR 164 trillion. 

What this means for merchants: Digital acceptance is no longer a nice-to-have. For most everyday retail and consumer markets, merchant pay solutions are already the default, not the exception. Merchants who are not ready for pay payment or pay checkout are likely losing many customers. Many retailers are upgrading their checkout systems because digital payment trends in Pakistan 2025 require faster, safer, and smoother processing.

2. Mobile Banking and Wallets Dominate 

In one quarter, users in Pakistan conducted 1686 million payments and transactions worth PKR 27 trillion through mobile app-based payment solutions platforms, increasing volume by 16% and value by 22%. Mobile banking, branchless banking wallets, and e-money wallets drove this growth. Furtherly, the surge in digital banking adoption shows in user-base numbers. As of Q3 FY25:

• Mobile banking app users rose to 22.6 million increase of 7% 
• branchless banking wallet users to 68.5 million up 6%
• e-money wallet users to 5.3 million up 12%
• Internet-banking users also increased, showing consistent digital uptake across banking channels.

In the e-commerce segment, pay solutions such as digital wallets or account-based payments dominate overwhelmingly, accounting for 94% of e-commerce paying business volume, while card-based payments made up only 6%. For merchants, if your checkout flow only supports cards or cash, you risk losing a large portion of potential buyers. Integrating AssanPay ensures seamless pay digital and wallet options.

3. E-commerce and In-store Digital Payments Are Both Growing

Digital payment growth isn’t limited to e-commerce. Both online and brick-and-mortar retail are showing strong adoption. According to Q3 FY25 data:

• E-commerce transactions rose 40% in volume to 213 million and 34% in value to PKR 258 billion.
  
• In-store POS- and QR/terminal-based transactions continue climbing such as 140,861 merchants processed 99 million in-store transactions worth PKR 550 billion using some 179,383 POS terminals.
  
• QR-code payments also registered 21.7 million transactions valued at PKR 61 billion in the same quarter signalling QR is becoming a valid in-store payment method for many retailers.
  

Why this matters for merchants: Reliable POS/QR and wallet integration should be among your top concerns whether you own an e-commerce site, a physical store, or a café. Digital payments nowadays operate smoothly both online and offline, giving flexibility for diverse businesses. As digital adoption accelerates, understanding the real advantages for merchants is crucial. To learn how digital payments directly impact sales, customer trust, and operational workflows, read our detailed blog 5 Ways Small Businesses Can Benefit from Digital Payments.

4. Instant Payments via Assanpay Are Gaining Traction (Speed, Zero-Cash Risk, and Settlement Efficiency)

For businesses, timely payments are a top priority. AssanPay, a leading payment solutions company, enables companies to receive and send payments and transactions instantly, working as a strong and secure bridge between them. Whether it’s supplier settlements, bulk payments to vendors, or client invoices, with real-time processing your business cash flow improves, helping you manage operations, stock, and payroll without delays.

AssanPay simplifies reconciliation and reporting, giving your finance team full visibility over every transaction of payment. Fewer manual steps, no cash handling, and secure, traceable payments mean reduced errors and faster decision-making. By integrating AssanPay into your B2B operations, your business can streamline pay for payment, strengthen supplier relationships, and scale efficiently in Pakistan’s growing digital economy.

For merchants, Assanpay offers two big advantages:

• Instant settlements: funds transfer fast, enabling quicker cash-cycle turnaround.
  
• Lower friction in checkout: especially for bank- or wallet-linked customers fewer steps, no cash handling, better traceability.

5. Digital Infrastructure is Expanding Rapidly

The structural backbone enabling all these POS terminals, QR-payment acceptance, soft-POS solutions, and broad wallet/banking app availability is expanding fast. 

• POS network size and number of active merchants rose significantly.
  
• QR-code based payment volume continues to climb, showing that many small retailers and neighbourhood shops are embracing digital payments.

This expansion drastically lowers the barriers for smaller merchants like kiryana stores, cafés, and small retailers to go cashless. No expensive infrastructure needed just a phone, QR, or POS terminal is enough.

6. There Are Still Challenges to Rural Adoption and Trust

Despite the tremendous progress, there are still some challenges. Low-literacy communities, rural areas, and places with low internet or smartphone penetration are still underserved, despite the fact that overall digital usage is significant.

Cash-on-delivery, cash withdrawals (via ATMs), and over-the-counter banking remain relevant especially for demographics cautious of digital payments or for whom digital banking/wallets remain inaccessible. 

For merchants, this means: don’t assume 100% of your market will go digital overnight. If you cater to rural or less digitally-inclined customers, it may make sense to maintain hybrid payment options such as a digital as well cash system for some time.

7. What Smart Merchants Should Do, Tactical Recommendations

Based on the digital payment trends in pakistan and data above, here’s a practical list of what merchants should prioritize now:

To stay competitive in 2025, businesses should support multiple digital payment channels wallets, mobile banking, bank transfers, POS, and QR. The more options you offer, the easier it is for your clients, suppliers, and customers to pay.

Offering wallet and mobile-app checkout is essential, especially since wallet payments dominate e-commerce and digital retail. Include wallet buttons, branchless banking wallets, e-money wallets, or mobile wallets on your online checkout page to make transactions seamless.

For physical stores allowing QR-code or POS acceptance is a cost-effective way to go digital. Soft-POS and QR solutions make adoption quick and affordable.

Integrating AssanPay for instant payments helps businesses improve cash flow, reduce settlement delays, and build trust with partners and clients.

Where necessary, businesses can maintain hybrid models, offering cash for clients in areas with lower digital penetration, allowing no revenue is lost.

Security is fundamental. Fraud concerns increase as digital payments grow. Maintain secure payment flows, validation checks, and fraud protection procedures to protect both your business and your clients.

Finally, monitor performance and statistics. To continuously improve your payment strategy and increase efficiency, keep track of payment methods, monitor conversion rates, and evaluate checkout drop-offs. Read more about choosing the right payment gateway in Pakistan in our detailed guide:

8. What This Means for 2025 & Beyond: Strategic Implications

• As of FY25, Pakistan appears to have crossed a digital adoption tipping point. With approx 88% of retail payments digital, and robust growth in mobile wallets, POS/QR, and e-commerce payments digital payments are now the norm, not a niche.
  
• Merchants who integrate multiple payment methods and smooth checkout will have strong advantages in reach, conversion, and cash-cycle efficiency.
  
• Smaller merchants, kiryana stores, local shops, and even informal businesses stand to benefit from simpler POS/QR solutions and wallet integration. They can offer cashless convenience to customers without a massive investment.
  
• Over time, as digital infrastructure deepens, rural and low-income segments may also increasingly adopt digital payments, provided there is continued fintech-bank collaboration, awareness, and accessible interfaces.

Conclusion

The data from SBP and other sources make it clear: 2025 is not just another year, it’s a transformative milestone in payments business evolution. Digital payments now dominate retail transactions. Wallets, mobile banking, QR/POS and pay solutions are driving the shift.

For merchants, understanding digital payment trends in Pakistan 2025 is essential for reducing operational inefficiencies. Offering multiple payment options, including wallets and instant rails like Assanpay. AssanPay as a payment gateway enables multiple pay digital options, smooth pay checkout, and efficient business pay flows, boosting convenience, conversion, and operational efficiency.