Adoption of digital transactions in Pakistan has seen a 17% growth YoY during 2016-17 as per annual performance review from State Bank of Pakistan (SBP).

The credit goes to mobile broadband technology in Pakistan that has encouraged digital transactions. Increasing awareness and efficiency of e-commerce businesses and online payments systems are also responsible for this change. Mobile and internet banking transactions are gradually becoming strong while ATM stills hold a sizeable part of transactions while.

Around 625.8 million transactions made through electronic banking, businesses, and consumers of Pakistan that registered a 17% growth than last year’s 543.8 million.

During 2017 total value of transactions mounted at Rs37.1 trillion not depicted any improvement. The total commercial banking activity accounted for Rs31.1 trillion while transactions remained 143.6 million.

SBP reported that Rs31.1 trillion…was 23% of total e-banking transactions by volume and 84% by value.

Initiation of projects like the development of National Payment Gateway, online collection of taxes and duties and elimination of cheques from government payments will have far-reaching implications on banking system efficiency, effectiveness, and access stated by SBP.

About 25 banks are offering internet and call center services and 18 banks operating through mobile banking.

SBP said in its report that ATMs are frequently used for withdrawal of cash. A total of Rs442 billion withdrawn via ATMs during Ramzan and Eidul Fitr holidays, 2017. Furthermore, 11.5% increase in a number of ATM machines as 32 banks owns 12,689 ATMs across Pakistan.

On the other hand, call center or IVR usage has drastic fall of 63%. The reason is that intensifying use of internet and mobile banking has taken the charm away from call centers. SBP quotes in its report that customers prefer mobile banking and internet banking over call centers/ IVR.

Another trend of e-commerce as 571 merchants are selling their offerings online. There were 1.2 million e-commerce transactions worth Rs9.4 billion.

Furthermore, point of sale (POS) machines have also increased by 7.3% (54,490 points) while transaction value registered growth of 23% accounting for Rs246 billion as per SBP report. This is because of higher incentives offered by banks and third-party operators t for higher POS transactions. Furthermore, plastic cards have also shown an upsurge of 8.8% rising to 36.6 million than last year.