Qudsia Bano

Card-based payments in Pakistan continued to expand during the first quarter of FY26, with total transactions crossing 430.5 million, reflecting sustained growth in card usage across retail, ATM and online payment channels, according to the State Bank of Pakistan’s Payment Systems Review.

The central bank reported that the total number of payment cards in circulation rose to 61.3 million, highlighting the steady expansion of the country’s cardholder base. Debit cards continued to dominate the market, accounting for the overwhelming majority of issued cards, while credit, social and prepaid cards maintained comparatively smaller shares.

During the quarter, card-based transactions generated a total value of Rs5.2 trillion, underscoring the growing reliance on cards for both cash withdrawals and retail purchases. The data shows that debit cards remained the primary instrument for everyday spending, particularly for ATM withdrawals and point-of-sale transactions.

According to the review, ATM usage remained strong, with 267.4 million ATM transactions amounting to PKR 4.5 trillion recorded during the quarter. On average, each ATM handled 142 transactions per day with an average ticket size of PKR 16,800 per transaction.

These transactions reflected sustained consumer reliance on cash withdrawals, even as digital and card-based payments continued to expand. The widespread availability of ATMs across urban and semi-urban areas has helped maintain accessibility to banking services for a large segment of the population.

The report notes that the increasing acceptance of card payments by retailers has encouraged greater consumer adoption, particularly in formal retail settings such as supermarkets, fuel stations and shopping malls.

The State Bank highlighted that improvements in payment infrastructure, including enhanced security standards and better transaction processing capabilities, have contributed to rising confidence in card-based payments. Ongoing efforts by banks to upgrade their systems and offer customer-friendly services have further strengthened card usage trends.

The review also pointed out that while digital wallets and mobile payments are growing rapidly, cards remain a vital component of the payment ecosystem due to their widespread acceptance and familiarity among users. The growing mix of cards, mobile apps and digital instruments reflects the shifting dynamics of Pakistan’s payments landscape.

According to the central bank, the continued growth in card-based transactions demonstrates the resilience and adaptability of the country’s payment infrastructure. As financial institutions continue to invest in technology and expand acceptance networks, card usage is expected to remain a key pillar of Pakistan’s retail payment system in the near term.

Credit: INP-WealthPk