The use of e-Banking Channels has witnessed an increase as transaction rise by 25 percent in value and 23 percent in volume in the first quarter of FY21 as compared to the previous quarter (4QFY20), according to the State Bank of Pakistan (SBP).

According to SBP's Payment Systems Review for 1st Quarter-FY21, banking through digital channels has been gaining increasing popularity in the country in recent years.

Pakistan's total Payment transactions also increased by 23% in volume and 8% in value compared to the previous quarter.

SBP explains that the large-value payment system of Pakistan i.e. PRISM which is owned and operated by SBP, has enabled this transfer and settlement of high value interbank funds, improving the overall efficiency of the large value payment system. The transaction volume for PRISM also increased to 972,000, depicting a growth of 36% in 1QFY21 as compared to the previous quarter.

In addition to this, commercial Banks in Pakistan are also investing in e-Payments infrastructureas a result of SBP’s enabling policies. At the quarter-end, 2020, all of the 16,121 bank branches reported by the Banks/MFBs, except 35, were providing online banking services to their customers through the internet, mobile phones and call center facilities.

Moreover, SBP reports that during the first quarter of FY21, e-Banking channels i.e. RTOBs, ATM, POS, eCommerce, Banking through Mobile Phone, Internet and Call Centers altogether processed 253.7 million transactions of value Rs.19.1 trillion. ATMs had the highest share of 53% in volume of the total number of e-Banking transactions in the country.

The increase in transactions through internet and mobile channels have immensely facilitated consumers in carrying out e-banking transactions, especially during the pandemic. SBP expects this upward trend to continue in the next quarter and hopes to take steps to further promote digitization amidst the pandemic.