Cashless transactions growing
KARACHI: Paper-based transactions remained less than half of digital and other related electronic transactions, said a State Bank report issued on Monday.
“During the second quarter of FY18, 0.4 million transactions amounting to Rs93.6 trillion were processed by Pakistan Real-Time Interbank Settlement Mechanism (PRISM),” stated SBP’s ‘Payment System Review-2QFY18’.
According to the report, 117.6m transactions worth Rs40.3tr were carried out using paper-based instruments ie over-the-counter cash deposits, cheques, pay orders, demand drafts etc.
The report credited PRISM with playing a key role in the financial infrastructure of the country. The mechanism has 41 direct participants comprising of 29 commercial banks, two specialised banks, two microfinance banks (MFBs), seven development finance institutions and one non-bank ie Central Depository Company.
During the quarter, digital (e-Banking) channels processed 186.7m transactions worth Rs11.7tr, said the report.
Real-time online banking (RTOB) processed 41.7m transactions valuing at Rs9.8tr, of which online cash deposits transactions have the highest share at 47 per cent.
As of Dec 31, 2017, the total number of automated teller machines (ATMs) installed by 32 banks in the country reached 13,409 from 12,963, reflecting a quarterly growth of 3.4pc.
These ATMs processed 115.3m transactions amounting to Rs1.35tr. Cash withdrawals contributed to the majority of the ATM transactions both in terms of volume at 102.6m (95pc) and value at Rs1.17tr (87pc).
The report said nine banks in Pakistan have acquired point of sale (POS) machines and 16.4m transactions worth Rs73.4 billion were processed through these POS terminals.
25 banks in Pakistan offer digital financial services through internet banking to 2.7m registered users. Internet banking processed 7.4m transactions worth Rs292.7bn during the second quarter.
Mobile phone/app-based banking is being offered by 18 Banks/MFBs to a total of 2.7m registered mobile phone banking users in the country. 5m transactions amounting to Rs91.7bn were processed through this channel during the quarter under review.
Due to the rapid increase in internet and mobile phone banking in the country, the overall volume of call centres’ banking has reduced. During the quarter, 77,300 transactions worth Rs2.4m were processed by call centres’ banking.
The number of debit cards in circulation stood at 19.8m, having processed 107.9m (80.8pc) transactions of value Rs1.25tr (85.1pc). Credit cards in circulation totalled 1.37m with its transactions at Rs47.4bn.
The paper-based transactions showed a quarterly decline of 1pc in volume, whereas an increase of 7.9pc in value was recorded, compared with the previous quarter.
“The average value of paper-based transaction has increased as against previous quarter, which shows that for small transactions, people prefer e-banking channels.