Moaaz Manzoor

Pakistan’s digital payment ecosystem continued to broaden in the first quarter of FY26, with rapid expansion in QR-based payment acceptance as the number of merchants enabled to accept QR payments crossed 1.2 million, according to the State Bank of Pakistan’s Payment Systems Review.

The central bank reported that QR-enabled transactions gained strong momentum during the quarter, reflecting growing adoption of low-cost, interoperable payment solutions among small and medium-sized businesses. A total of 28 million QR-based transactions were recorded during the quarter, with a combined value of Rs92 billion, highlighting the rising role of QR codes in facilitating everyday commercial payments.

According to the review, the expansion of QR-based payments has been driven by increasing merchant onboarding across urban and semi-urban areas. Small retailers, service providers and microbusinesses have increasingly adopted QR codes due to their low setup costs, ease of use and compatibility with multiple payment applications. This has significantly lowered barriers to entry for digital payments, especially for businesses that previously relied entirely on cash transactions.

The report noted that QR payments have gained traction due to their interoperability across banks and payment service providers, allowing customers to make payments using a single QR code regardless of their bank or wallet provider. This interoperability has improved user convenience and encouraged wider acceptance among merchants and consumers alike.

According to the State Bank, the growing adoption of QR payments reflects broader efforts to promote inclusive digital finance and reduce dependence on cash. The system has enabled small merchants, street vendors and service providers to participate in the formal financial system without the need for expensive point-of-sale terminals.

The central bank further highlighted that QR-based payments are playing an important role in promoting financial inclusion by enabling small-value, high-frequency transactions in a secure and traceable manner. The simplicity of QR technology has made it particularly attractive for micro and small enterprises seeking affordable digital payment solutions.

The report added that continued expansion of QR-enabled merchants is expected to support the growth of cashless transactions across the country. With ongoing initiatives to standardise QR acceptance and improve interoperability, the State Bank expects QR-based payments to remain a key driver of digital payment adoption in the coming quarters.

The increasing uptake of QR payments, the review noted, reflects steady progress toward a more inclusive, efficient and digitally integrated payment ecosystem in Pakistan.

Credit: INP-WealthPk