By Farooq Awan

Pakistan’s digital merchant ecosystem expanded significantly during the second quarter of fiscal year 2025-26, driven by rising adoption of QR payments, point-of-sale (POS) transactions, and e-commerce activity across the country. According to the Payment Systems Quarterly Review for Q2 FY26, available with Wealth Pakistan, merchant payments recorded strong growth across multiple channels, reflecting increased use of digital payment options in retail and online transactions.

QR-based payments showed notable expansion during the quarter. Transactions conducted through QR-enabled merchants reached around 60 million, with a total value of Rs288 billion. The report indicates that this represents a substantial increase in both transaction volume and value compared to the previous quarter, highlighting the growing acceptance of QR-based payment methods among merchants and consumers.

The number of QR-enabled merchants also increased significantly. By the end of December 2025, the total number of such merchants reached approximately 1.9 million, indicating rapid expansion of QR payment infrastructure across retail outlets. POS transactions also contributed to the growth in merchant payments. During the quarter, 147.2 million transactions were conducted at POS terminals, covering payments made at retail stores using debit and credit cards.

In value terms, these transactions amounted to approximately Rs789 billion, reflecting continued use of card-based payments at physical merchant locations. The report shows that the number of POS machines deployed across the country increased to over 232,000, installed at around 189,919 merchant outlets. This expansion of POS infrastructure has supported the growth in card-based payments and facilitated digital transactions at physical stores.

E-commerce transactions formed another key component of merchant payments. A total of 305 million online purchases were recorded during the quarter, with a combined value of Rs422 billion. These transactions were processed through digital payment channels, including account-based systems and payment gateways.

The number of registered e-commerce merchants also increased during the period, reaching 17,449 by the end of the quarter. This reflects continued expansion in online retail activity and the growing integration of digital payment systems into e-commerce platforms. The quarterly data shows that the expansion of merchant payment infrastructure and the increase in transaction volumes across different channels are contributing to the broader growth of Pakistan’s digital payment ecosystem.

Overall, the figures for Q2 FY26 highlight the continued development of digital payment acceptance among merchants, supported by the expansion of QR-enabled stores, POS networks, and e-commerce platforms across the country.

Credit: INP-WealthPk