- PRISM upgrades and branchless banking accelerate secure, efficient, and inclusive retail payment systems in Pakistan
According to the latest State Bank of Pakistan (SBP) report, Banks and Microfinance Banks (MFBs) remain the backbone of the retail payments ecosystem, providing the core infrastructure for a wide range of transactions, including fund transfers and settlements, card-based payments, mobile and internet banking, cash management, cheque clearing, and the issuance of instruments such as pay orders and demand drafts.
Complementing this formal banking network, Branchless Banking (BB) operators extend financial services through extensive agent and micro-merchant networks, enabling access in both urban areas and underserved or remote locations. In parallel, Electronic Money Institutions (EMIs) are reshaping the payments landscape by offering e-wallet solutions and promoting cash-lite transaction behaviour, accelerating the adoption of secure, efficient, and fully digital payment instruments.
Statistics from the report show that during Q1-FY2026, retail payments grew by 10 percent to 2.8 billion, amounting to Rs 166 trillion. The share of retail payments through digital payment channels now stands at 90 percent, compared with 87 percent in the corresponding quarter of the previous year (Q1-FY2025). By value, however, digital payments account for approximately 33 percent.
By volume, retail payments are dominated by 1,445 million fund transfers, followed by 400 million merchant payments, 353 million bill payments and top-ups, 311 million cash withdrawals via ATMs, branches, and agents, and 87 million cash deposits. By value, fund transfers lead retail payments at PKR 123 trillion, followed by cash withdrawals and cash/instrument deposits at Rs 28 trillion. Fund transfers can be made through digital channels such as ATMs, mobile banking apps, internet banking, and OTC channels, including BB agents and bank branches (via cheques).
Meanwhile, the Pakistan Real-time Interbank Settlement Mechanism (PRISM) is the country’s Real Time Gross Settlement System (RTGS), typically used for large-value interbank fund transfers, government securities, retail clearing, and related settlements. PRISM remains a cornerstone of payment and settlement services in Pakistan. The SBP is working to upgrade the PRISM system with advanced features, especially regarding government securities operations.
During Q1-FY2026, the first full quarter after the PRISM+ upgrade, total transactions by value increased by 14 percent. Government securities transactions grew to Rs 254 trillion, compared with Rs 200 trillion in the same quarter of the previous year. Other PRISM transactions, including IBFT, third-party customer transfers, and ancillary clearing settlements, also increased compared with the previous year.
Analysis of PRISM transactions shows that 92 percent of the volume comprises customer-initiated RTGS transactions. By value, however, these account for only 9 percent of total transaction value. The majority share by value (72 percent) is held by government securities settlements, followed by interbank fund transfers (13 percent).
| Pakistan: Payment Systems | ||
|---|---|---|
| Details | End Jun-25R | End Sep-25P |
| Country’s Population (in million) | 241.5 | 241.5 |
| Currency in Circulation (in PKR billion) | 10,634 | 10,499 |
| Payment Systems Infrastructure | ||
| Banks, Microfinance Banks, and Digital Banks | 42 | 42 |
| Payment System Operators/ Payment Service Providers – PSOs/PSPs | 6 | 6 |
| Electronic Money Institutions – EMIs | 6 | 6 |
| Branchless Banking Service Providers – BBs | 15 | 15 |
| PRISM Participants | 59 | 59 |
| Payments Network | ||
| Branches of Banks & MFBs | 19,347 | 19,852 |
| Branchless Banking Agents | 731,814 | 756,480 |
| ATMs | 20,341 | 20,527 |
| CDMs/CCDMs | 1,038 | 1,252 |
| Point-of-Sale (PoS) Machines | 195,849 | 220,532 |
| PoS enabled Merchants | 159,284 | 181,067 |
| Registered E-Commerce Merchants (Banks/MFBs) | 9,584 | 9,913 |
| QR enabled Merchants | 1,092,044 | 1,168,858 |
| Digital Payment Channel Users and Instruments (in million) | ||
| BB Mobile App Users | 79.2 | 88.0 |
| Mobile Banking Users | 24.1 | 25.9 |
| EMIs’ E-Wallet App Users | 5.8 | 6.3 |
| Internet Banking Users | 14.9 | 15.2 |
| Call Center/ IVR Banking Users | 43.6 | 44.3 |
| Payment Cards | 59.3 | 61.3 |