Online banking transactions increase 30% in FY21


KARACHI: Online banking transactions in fiscal year 2020-2021 grew 31.1% year-on-year, reflecting a substantial increase in the adoption of digital payment methods, central bank data showed on Friday .

Transactions processed through the State Bank of Pakistan’s (SBP) Large Value Payments segment, known as Pakistan’s Real-Time Interbank Settlement Mechanism, experienced an annual growth of 60.0 in number of transactions ( volume) and 12.8% in value. , indicates the annual review of SBP’s payment systems for fiscal year 2020-2021 published here on Friday.

“The growth has been observed in the space of digital financial transactions in the country and has decided to continue its quest for the development of a robust and efficient payment ecosystem in Pakistan,” the central bank said.

The report states that global online banking transactions grew 31.1% year-on-year, highlighting a substantial increase in the adaptation of digital means for payments.

“This growth was driven by the significant adoption of mobile banking (29% increase in user count, 133.6% and 178.7% increase in volume and value respectively) and banking services online (32% increase in the number of users, 65.1% and 91.7%). percentage increase in volume and value respectively), ”he said.

SBP attributed this promising growth to the offering of app-based banking services from 27 banks as well as other entities offering innovative payment solutions to accept digital transactions.

In fiscal 2021, the adoption of digital payments for retail transactions continued to show an upward trend. Thanks to the active efforts of the SBP, the number of POS (point of sale) machines accepting cards has grown by 47%. Transactions processed through point-of-sale machines reached 88.8 million for an amount of Rs453.1 billion, showing year-over-year growth of 26.3% in volume and 24.4% in value of transactions.

The same trend was also reflected in e-commerce transactions. The number of online merchants reached 3,003, posting double-digit growth of 76%.

Consumers completed 21.9 million online transactions worth Rs 60.6 billion on these locally registered e-commerce merchants in fiscal year 2021, representing significant annual growth of 114.8 billion. % and 74.1% in volume and value of transactions respectively.

These trends point to healthy growth by fostering a more digitally integrated economy.

Likewise, on the card issuance side, at the end of June 2021, there were 45.9 million cards in circulation which mainly included debit cards (65.0%), social assistance cards (18 , 4%), ATM cards only (12.6%), Credit cards (3.7%) and prepaid cards (0.3%). Collectively, these cards processed 708.7 million transactions amounting to PKR 8.4 trillion in FY2021. The number of debit cards at the end of FY2021 was 29.8 million, observing annual growth of 11.8% and annualized growth of 13.8% over the past 4 years. Transactions processed through ATMs also reached 598.7 million for a total value of 8.1 trillion rupees. This equates to growth of 16.9% in volume and 25.6% in value on an annual basis.

SBP said the country’s core payments systems infrastructure remains operationally resilient as all payment system channels show significant growth.

SBP hopes that the growth momentum in all key areas of the digital payments ecosystem will continue to strengthen.

“Modernization of the country’s payment system and infrastructure is a key priority, for which SBP will continue to work towards establishing a favorable regulatory environment,” he said.

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