Moaaz Manzoor

Pakistan’s e-commerce sector recorded strong growth during the first quarter of FY26, with online payments reaching 250 million transactions and total transaction value climbing to Rs343 billion, according to the State Bank of Pakistan’s Payment Systems Review.

The central bank reported that digital wallets and account-based payment methods continued to dominate the digital payments landscape, accounting for 94 percent (235 million) of all digital e-commerce transactions by volume during the quarter. In value terms, these channels represented 80 percent of total digital e-commerce transactions, amounting to PKR 275 billion, underscoring consumers’ growing preference for secure and convenient electronic payment solutions.

The convenience of mobile wallets, combined with faster checkout processes and improved security features, has made them the preferred mode of payment for e-commerce purchases. The report noted that account-based payments also maintained a strong presence, supported by enhanced banking infrastructure and better integration between merchants and financial institutions. Together, these digital channels have significantly reduced reliance on cash-on-delivery, which historically dominated Pakistan’s e-commerce sector.

The State Bank highlighted that the growth in online payments reflects broader changes in consumer behaviour, driven by greater internet penetration, improved logistics networks and rising trust in digital platforms. The expanding use of smartphones and mobile applications has further accelerated the shift toward online shopping and digital payments.

According to the review, the increase in e-commerce transactions has been accompanied by improvements in payment security and fraud management systems. Banks and payment service providers have invested in advanced authentication and monitoring mechanisms to ensure safe and reliable online transactions.

The central bank added that the rapid growth of e-commerce payments is helping formalise the economy by improving transaction traceability and reducing reliance on cash. This trend supports national objectives aimed at strengthening digital commerce and broadening the tax base.

The report concluded that continued growth in e-commerce payments is expected as digital adoption deepens and consumer confidence in online platforms strengthens. With ongoing enhancements in payment infrastructure and merchant integration, e-commerce is likely to remain a key driver of Pakistan’s digital economy in the coming quarters.

Credit: INP-WealthPk