Terming modernisation of the country’s payment system and infrastructure a key priority, the State Bank of Pakistan (SBP) has said that the digital payment continued upward trajectory during the last fiscal year 2020-21. The central bank on Friday released its Annual Payment Systems Review (PSR) for the fiscal year 2020-21, which shows strong growth in the space of digital financial transactions in the country. The central bank said that it will continue to work on providing an enabling regulatory environment to modernise payment system, adding it expects that going forward, the momentum of growth across all key areas of the digital payments ecosystem will continue to strengthen. According to the review, transactions processed through SBP’s large-value payments segment, known as Real-time Inter-Bank Settlement Mechanism (PRISM), recorded YoY growth of 60.0 percent by number of transactions (volume) and 12.8 percent by value. Similarly, overall e-banking transactions registered year-on-year growth of 31.1 percent which highlights substantial increase in adoption of digital means for payments. This growth was spurred by major uptake in mobile banking (29 per cent increase in the number of users, 133.6 percent and 178.7 percent increase in volume and value respectively) and internet banking (32 percent increase in the number of users, 65.1 percent and 91.7 percent increase in volume and value respectively). This promising growth was achieved on the back of 27 banks offering app-based banking along with other entities offering innovative payment solutions for accepting digital transactions. During the fiscal year 2020-21, digital payments adoption for retail transactions continued to show an upward trend. Due to the active efforts of the SBP, the number of card accepting POS machines saw a growth of 47 per cent. Transactions processed through POS machines reached as high as 88.8 million amounting to PKR 453.1 billion, showing YoY growth of 26.3 percent by volume and 24.4 percent by value of transactions. The same trend was reflected in e-commerce transactions as well. The number of e-commerce merchants reached 3,003 which shows double-digit growth of 76 percent. Consumers carried out 21.9 million online transactions worth Rs60.6 billion on these locally registered e-Commerce Merchants during the year FY21 which amounts to significant YoY growth of 114.8 per cent and 74.1 per cent by volume and value of transactions respectively. These trends point toward healthy growth in fostering a more digitally integrated economy. Similarly, on the card issuance side, as on end-June 2021, there were 45.9 million total cards in circulation that mainly comprised of Debit cards (65.0 per cent), Social welfare cards (18.4 per cent), ATM only cards (12.6 per cent), Credit cards (3.7 per cent), and Prepaid cards (0.3 per cent). Collectively, these cards processed 708.7 million transactions amounting to Rs8.4 trillion during FY2021. The number of debit cards at the end of FY 2021 has been 29.8 million, observing a YoY growth of 11.8 percent and annualised growth of 13.8 percent during the last 4 years. Transactions processed through ATMs also grew to 598.7 million with the total value of Rs8.1 trillion. This amounts to growth of 16.9 percent by volume and 25.6 percent by value on YoY basis. The country’s core payment systems infrastructure remained operationally resilient, said the report.