Payment Systems Quarterly: October - December 2020 (Quarter-2, FY21)

Payment Systems Quarterly
October – December 2020 (Quarter-2, FY21)
Payment Systems Department

4th Floor, State Bank of Pakistan
I.I Chundrigar Road, Karachi
Payment Systems Review October – December 2020 (Quarter-2, FY21)
Contents
1. Payment Systems Snapshot................................................................................................ 4
2. Payment Systems Infrastructure ........................................................................................ 5
3. Payment Systems Transactions – Key Insights ................................................................... 6
4. Payment Systems Dataset .................................................................................................. 9
2
List of Figures
Figure 1 PRISM Transactions - Volume ............................................................................................................................. 6
Figure 2 PRISM Transactions - Value................................................................................................................................. 6
Figure 3 E-Banking Transactions (Volume) - Percentage Share ........................................................................................ 6
Figure 4 RTOB – Trend ...................................................................................................................................................... 7
Figure 5 Payment Processing Infrastructure (Trend) ........................................................................................................ 7
Figure 6 ATM Transactional Share (%) .............................................................................................................................. 7
Figure 7 Composition of Payment Cards........................................................................................................................... 8
3
Payment Systems Review for Quarter 2 – FY21

(October – December 2020)
1. Payment Systems Snapshot
Digital means of Banking have been gaining popularity in Pakistan; these are alternatives for faster delivery
of banking services to a wide range of customers. The Payment Systems in Pakistan consist of three major
areas:
a. The Large-Value Payment System (LVPS) “PRISM1” owned and operated by SBP, enables the transfer
and settlement of high value interbank funds.
b. e-Banking, which includes channels like Real Time Online Branches (RTOBs), Automated Teller
Machines (ATMs), Point of Sales (POS), Internet Banking, Mobile Phone Banking, Call Centers/IVR
Banking and e-Commerce.
c. Paper Based, which include instruments such as Cheques, Deposit Slips, and other paper based
methods.
A brief summary of comparative position of Payment Systems is as under:
Table-1: Comparative Summary of Payment Systems

(Volume in Million & Value in Billion-PKR)
Quarter 2 – FY21
Quarter 1 – FY21 Percentage Change
Payment Systems (Quarter Under Review)P
Volume Value Volume Value Volume Value
*
PRISM 1.0 92,246.2 1.0 94,910.0 3% 3%
e-Banking 253.7 19,124.4 296.7 21,474.7 17% 12%
Paper based 97.1 36,238.2 104.8 37,234.0 8% 3%
Total 351.8 147,608.8 402.5 153,618.7 14% 4%
P
is used for Provisional
The country’s total Payment transactions increased by 14% in volume and 4% in value when compared to
the previous quarter. The transaction value for PRISM increased from 92.2 Trillion PKR in the previous
quarter to 94.9 Trillion PKR in the current quarter showing a growth of 3%. The overall use of e-Banking
channels has seen an increase of 17% in volume and 12% in value over the previous quarter. Paper based
transactions have also seen an increase from the previous quarters, which can be inferred from easing down
of lockdown amid the COVID-19 pandemic.
*1.03 Million Transactions – More details can be found in Table 6

1
Pakistan Real-time Interbank Settlement Mechanism (PRISM) – more details can be found at
https://www.sbp.org.pk/psd/prism.htm
4
2. Payment Systems Infrastructure
Commercial Banks in Pakistan are expanding their infrastructure for supporting e-Payments due to SBP’s
enabling policies. As on quarter-end, there are 16,304 bank branches reported by the Banks/MFBs. Out of
which 106 are overseas branches. All branches, except 33, are providing online banking services to their
customers. There are 16,041 ATMs and 62,480 POS machines in the country.
Quarter-2 Quarter-3 Quarter-4 Quarter-1 Quarter-2

Number of:
FY20 FY20 FY20 FY21 FY21p
Commercial Banks 33 33 33 33 33
MFBs 11 11 11 11 11
DFIs 8 8 8 8 8
PRISM Participants 50 50 50 50 50
Banks 34 34 34 34 34
MFBs 6 6 6 6 6
DFIs 9 9 9 9 9
Non-Bank 1 1 1 1 1
All Banks/ MFBs Branches 16,076 16,069 16,067 16,121 16,304
RTOB Branches 15,930 15,947 15,922 15,978 16,165
Manual Branches 33 33 33 35 33
Overseas Branches 113 89 112 108 106
ATMs 15,252 15,559 15,612 15,770 16,041
On-site 12,446 12,694 12,759 12,906 13,171
Off-Site 2,802 2,859 2,847 2,855 2,858
Mobile 4 6 6 9 12
POS Machines 47,567 48,763 49,067 52,924 62,480
Internet Banking Users 3,567,266 3,814,147 3,983,235 4,264,056 4,505,945
Mobile Phone Banking Users 7,358,548 8,188,103 8,451,997 8,963,055 9,383,243
Call Centers/ IVR Banking Users 31,563,235 32,241,060 32,322,973 31,895,372 32,046,130
E-Commerce Merchants Registered

1,481 1,559 1,707 2,164 2,411
with Banks
5
3. Payment Systems Transactions – Key Insights

A. PRISM has 50 Direct Participants, which include Commercial Banks, MFBs, DFIs and Central Depository
Company (CDC)2. During the quarter under review, PRISM processed around one million transactions
valuing 94.9 trillion PKR. These transactions showed a quarterly increase of 3% by value.
In addition to the inter-bank funds transfers (settlement transactions between participating institutions),
PRISM also facilitates customer transfers which accounts for the largest share of 89% in the total volume.
Government securities transfer facility has the largest share of 63% in terms of value of transactions as
at end quarter under review.
PRISM Transactions - Volume PRISM Transactions - Value

1% 11% 4%
2%
8%
22%
63%
89%
Government Securities Inter-Bank Fund Transfers Government Securities Inter-Bank Fund Transfers
3rd Party Customer Transfers Ancillary Clearing Settlement 3rd Party Customer Transfers Ancillary Clearing Settlement
Figure 1 PRISM Transactions - Volume Figure 2 PRISM Transactions - Value
B. During the quarter under review, e-Banking channels i.e. RTOBs, ATM, POS, e-Commerce, Banking
through Mobile Phone, and Internet and Call Centers altogether processed 296.7 million transactions of
value Rs.21.4 trillion. ATMs processed the majority chunk with 51% transactions.
E-Banking Transactions (Volume) - Percentage Share

0% 2%
15% 17%
RTOB
ATM
7%
POS
Internet Banking
8%
Mobile Phone Banking
Call Centers/ IVR Banking
E-Commerce 51%
Figure 3 E-Banking Transactions (Volume) - Percentage Share
2
http://cdcpakistan.com/
6
C. The channel-wise summary of these transactions is as under:
RTOB - Trend i. The RTOBs altogether processed 49.3

60.0 18,000.0 million transactions of value Rs.16.9
16,000.0 trillion PKR.
50.0
14,000.0
40.0 12,000.0
10,000.0
30.0
8,000.0
20.0 6,000.0
4,000.0
10.0
2,000.0
- -
FY20 FY20 FY20 FY21 FY21
RTOB - Volume RTOB - Value
Figure 4 RTOB – Trend (RTOB Value on Secondary Axis)
ii. Banks/MFBs deployed 271 new ATMs, reaching the total number of ATMs in the country to 16,041
at quarter-end; these ATMs collectively processed 152.7 million transactions valuing around 2 trillion
PKR. Despite the availability of other banking facilities on ATM, ATMs still are mostly used for cash
withdrawals in the country. In total, cash withdrawals through ATMs has the highest share of 96% by
volume. Further, during the quarter under review, the number of POS machines increased to 62,480,
accounting for an increase of 18%.
Payment Processing Infrastructure ATM Transactional Share (%)

(Trend) 1%
1%
70,000 3,000 0% 0%
1%
60,000 2,500
50,000
2,000
40,000
1,500
30,000
1,000
20,000
10,000 500 96%
0 0
FY20 FY20 FY20 FY21 FY21
ATMs Cash withdrawals Intra-Bank Fund Transfer

POS Machines Fund Transfers Inter-Bank Fund Transfers
E-Commerce Merchants Registered with Banks Utilities Bill Payments Cash/Instrument Deposits
Figure 5 Payment Processing Infrastructure (Trend) (E-Commerce Merchants
Figure 6 ATM Transactional Share (%)
on Secondary Axis)
7
iii. The number of registered Mobile Phone Banking users reached 9.3 million, which is an increase of
5% from last Quarter. The increase in transactions through internet and mobile banking channels
have been quite promising, as these channels have provided an easy and round-the-clock alternative
to its customers during the COVID-19 pandemic to fulfil their daily financial and banking needs. It is
expected that the increasing trend will continue in the next quarter, due to the steps taken by State
Bank of Pakistan to promote digitization during these difficult times.
iv. The call center/IVR banking user-base was reported to be at around 32 million. During the quarter
under review, Call Centers/ IVR Banking processed 2 billion PKR through approximately 42 thousand
transactions.
v. As on quarter-end, the number of e-Commerce Merchants registered with banks rose to 2,411
accounting for 11% increase. These merchants processed valuing Rs.15 billion during the quarter
under review.
Composition of Payment Cards D. As on December 31, 2020, the

total number of payment cards
issued in Pakistan increased to 44.2
4%
0%
million up from 43 million last
Debit Cards 17% quarter. Almost 62% of these cards
ATMs only Cards
are Debit Cards.
Social Welfare Cards
17%
Credit Cards 62%
Pre-Paid Cards
Figure 7 Composition of Payment Cards
E. During the quarter under review, 104.7 million transactions of value 37.2 trillion PKR were processed
through paper-based instruments.
The Statistical Data of Payment Systems is appended on following pages.
8
4. Payment Systems Dataset
Table-2: Payment Systems in Pakistan – Snapshot
Details as on December 31, 2020
Total Population3 208.31 million

Currency in Circulation4 (in million PKR) 6,543,806
Number of Banks’ Accounts5 59,910,511
Payment Systems Infrastructure as on December 31, 2020

Number of Banks (Branches) 44(16,304)
Commercial/ Specialized Banks Branches 15,096
Microfinance (Branches) 1,208
Number of Real Time Online Branches (RTOBs) 16,165
Number of banks having ATM machines 35
Number of banks having open-looped POS machines 5
Number of banks having closed-looped POS machines 4
Number of banks providing Internet Banking services 27
Number of Banks providing Mobile Phone Banking services 27
Number of Banks providing Call Center Banking services 23
Total Number of PRISM System Participants 50
Total number of ATMs Interoperable Switches 1
Total number of Cash & Cheque Deposits Machines (CDMs) 225
Total number of Cash Deposits Machines with Cash Withdrawal facility 20
Multipurpose ATMs (With Cash & Cheque Deposit & Cash Withdrawal) 15
3http://www.pbs.gov.pk/content/table-4-gross-domestic-product-pakistan-current-basic-prices (position as of June 30, 2020)

4 As on end September, 2020 Monthly Statistical Bulletin, SBP publication
5 As on June, 2020 is used from Monthly Statistical Bulletin, SBP publication
9
Table-3: Payment Systems Infrastructure– Comparison
(Actual Numbers)
Number of:
Commercial Banks 33 33 33 33 33
MFBs 11 11 11 11 11
DFIs 8 8 8 8 8
PRISM Participants 50 50 50 50 50
Banks 34 34 34 34 34
MFBs 6 6 6 6 6
DFIs 9 9 9 9 9
Non-Bank 1 1 1 1 1
All Banks/ MFBs Branches 16,076 16,069 16,067 16,121 16,304
RTOB Branches 15,930 15,947 15,922 15,978 16,165
Manual Branches 33 33 33 35 33
Overseas Branches 113 89 112 108 106
ATMs 15,252 15,559 15,612 15,770 16,041
On-site 12,446 12,694 12,759 12,906 13,171
Off-Site 2,802 2,859 2,847 2,855 2,858
Mobile 4 6 6 9 12
POS Machines 47,567 48,763 49,067 52,924 62,480
Internet Banking Users 3,567,266 3,814,147 3,983,235 4,264,056 4,505,945
Mobile Phone Banking Users 7,358,548 8,188,103 8,451,997 8,963,055 9,383,243
Call Centers/ IVR Banking Users 31,563,235 32,241,060 32,322,973 31,895,372 32,046,130
E-Commerce Merchants Registered

1,481 1,559 1,707 2,164 2,411
with Banks
Table-4: Composition of Payment Cards

(Actual Numbers)
Number of:
Debit Cards 26,440,418 26,519,480 26,698,046 26,670,759 27,591,577
ATMs only Cards 7,650,190 7,541,264 6,943,385 6,978,079 7,245,554
Social Welfare Cards 6,180,044 7,365,773 7,383,380 7,559,333 7,623,718
Credit Cards 1,643,903 1,663,286 1,655,030 1,639,115 1,691,037
Pre-Paid Cards 168,188 139,521 134,586 135,596 133,298
Total 42,082,743 43,229,324 42,814,427 42,982,882 44,285,184
10
Table-5: Payment Systems Transactions–Summary

Transaction Quarter-2 Quarter-3 Quarter-4 Quarter-1 Quarter-2
Type
Volume Value Volume Value Volume Value Volume Value Volume Value
PRISM System 0.6 97,020.8 0.7 95,104.9 0.7 90,996.8 1.0 92,246.2 1.0 94,910.0
E-Banking 239.2 17,628.6 236.1 17,467.1 206.5 15,276.4 253.7 19,124.4 296.7 21,474.7
RTOB 48.9 14,731.6 46.8 14,456.9 32.2 12,161.7 42.7 15,238.5 49.3 16,904.2
ATM 135.7 1,658.7 131.6 1,681.8 114.9 1,525.6 134.9 1,785.2 152.6 2,028.3
POS 20.5 107.5 19.5 102.5 11.4 61.9 16.8 92.3 23.1 115.0
Internet Banking 13.3 736.0 14.1 748.1 17.0 894.2 18.9 1,085.9 22.1 1,293.1
Mobile Phone Banking 17.8 382.5 21.2 467.5 28.6 621.8 36.4 908.7 44.0 1,117.0
Call Centers/ IVR Banking 0.1 2.1 0.1 3.2 0.1 1.8 0.1 1.9 0.0* 2.0
E-Commerce 2.9 10.2 2.8 7.1 2.3 9.4 3.9 11.9 5.6 15.0
Paper-Based 121.5 35,097.2 109.3 32,616.0 78.5 29,864.3 97.1 36,238.2 104.8 37,234.0
Total 361.3 149,746.6 346.1 145,188.0 285.7 136,137.6 351.8 147,608.8 402.5 153,618.7
*42,600 were recorded in Call Centers/ IVR Banking
11
Table-6: PRISM Transactions

(Volume in Thousands & Value in Trillion-PKR)
Transaction Type
Government Securities 21.3 62.9 23.2 62.7 18.8 59.4 18.6 60.1 18.1 59.8
Inter-Bank Fund Transfers 78.3 20.8 77.6 20.1 61.5 18.3 72.7 19.1 82.6 20.8
3rd Party Customer Transfers 527.7 9.4 546.3 8.5 622.4 8.8 866.5 9.3 909.7 10.3
Ancillary Clearing Settlement 15.9 4.0 15.0 3.8 13.5 4.2 14.6 3.7 15.8 4.0
Total 643.2 97.0 662.1 95.1 716.2 90.9 972.5 92.2 1,026.2 94.9
Table-7: Real-Time Online Branches (RTOBs) Transactions

Transaction Type
Cash Deposits 24.5 3,118.6 22.5 2,992.0 14.3 2,305.8 19.8 3,184.9 23.4 3,591.4
Cash Withdrawals 10.0 1,234.2 9.9 1,234.4 7.1 930.9 9.2 1,311.5 10.7 1,563.6
Intra-Bank Funds Transfers 14.5 10,378.8 14.4 10,230.6 10.8 8,925.0 13.7 10,742.1 15.2 11,749.3
Total 48.9 14,731.6 46.8 14,456.9 32.2 12,161.7 42.7 15,238.5 49.3 16,904.2
12
Table-8: ATM Transactions

Transaction Type
Cash withdrawals 130.6 1,499.2 126.8 1,533.1 110.7 1,382.4 129.8 1,603.8 147.2 1,827.6
Intra-Bank Fund Transfer
1.8 62.8 1.7 60.6 1.1 45.9 1.6 61.6 1.6 63.7
Fund Transfers
Inter-Bank Fund Transfers 1.7 85.5 1.5 78.4 1.8 85.3 2.0 102.9 2.2 112.1
Utilities Bill Payments 1.5 5.0 1.4 2.6 1.1 3.4 1.3 7.4 1.3 4.3
Cash/Instrument Deposits 0.1 6.1 0.1 7.0 0.1 8.4 0.1 9.3 0.3 20.5
Total 135.7 1,658.7 131.6 1,681.6 114.9 1,525.6 134.9 1,785.1 152.6 2,028.2
Table-9: Internet Banking Transactions

Transaction Type
Intra-Bank Fund Transfers 5.3 302.0 5.9 319.7 6.3 368.0 6.5 407.9 7.8 488.2
Inter-Bank Fund Transfers
4.1 249.3 4.1 251.5 5.9 342.6 7.2 447.8 8.9 527.4
Funds Transfers
Misc. Payment Through
0.8 154.1 0.8 121.9 0.8 146.3 1.5 166.7 1.1 178.1
Internet Banking
Total 13.3 736.0 14.1 748.1 17.0 894.2 18.9 1,085.9 22.1 1,293.1
13
Table-10: Mobile Phone Banking Transactions

Transaction Type
Inter-Bank Fund Transfers
4.3 154.9 5.5 192.8 10.0 300.5 14.2 426.9 18.8 550.5
Funds Transfers
Misc. Payment Through
1.2 50.9 1.4 59.3 1.3 72.8 1.9 127.5 2.0 147.0
Mobile Phone Banking
Total 17.8 382.5 21.2 467.5 28.6 621.8 36.4 908.7 44.0 1,117.0
Table-11: Call Center/ IVR Banking Transactions

(Volume in Thousands & Value in Billion-PKR)
Transactions Type
Inter-Bank Funds Transfers 0.3 - 0.2 - 0.2 - 0.3 - 0.2 0.0
Misc. Payment Through Call
37.3 1.6 35.5 2.7 36.1 1.3 32.3 1.4 32.1 1.6
Centers/IVR Banking
Total 49.2 2.1 46.6 3.2 49.1 1.8 45.2 1.9 42.6 2.0
14
Table-12: ATM Transactions - By Payment Cards

Transaction Type
ATMs only Cards 13.0 141.3 10.6 117.0 7.7 90.0 7.7 90.8 6.9 79.4
Debit Cards 121.3 1,507.4 120.5 1,560.4 100.2 1,374.5 125.8 1,690.2 138.0 1,873.2
Credit Cards 0.1 0.8 0.1 0.9 0.1 0.6 0.1 0.8 0.1 0.8
Pre-Paid Cards 0.1 0.7 0.1 0.6 0.1 0.5 0.1 0.5 0.1 0.5
Social Welfare Cards 0.3 1.2 0.4 1.8 0.2 1.1 0.2 0.7 0.6 1.8
Total 134.8 1,651.3 131.6 1,680.6 108.3 1,466.6 134.0 1,783.0 145.7 1,955.6
Table-13: POS Transactions - By Payment Cards

Transaction Type
ATMs only Cards - 0.3 - 1.1 - - - - - -
Debit Cards 13.9 56.4 13.1 53.3 8.3 34.2 13.2 53.1 16.2 70.7
Credit Cards 9.8 56.8 9.1 52.7 5.8 32.9 8.1 44.3 9.3 52.8
Pre-Paid Cards - - - - 0.0 0.1 0.0 0.1 0.0 0.1
Social Welfare Cards - 0.1 - 0.1 0.0 0.0 0.0 0.5 0.0 0.1
Total 23.8 113.7 22.3 107.3 14.1 67.2 21.3 98.0 25.5 123.7
15
Table-14: E-Commerce Transactions by Cards

Transaction Type
Debit Cards 3.0 9.5 2.7 8.5 2.9 8.4 3.9 11.1 5.8 15.4
Credit Cards 2.3 13.3 2.1 11.7 1.7 8.4 2.2 12.9 2.8 16.4
Pre-Paid Cards 0.1 0.2 0.1 0.1 0.0 0.1 0.0 0.1 0.0 0.1
Total 5.4 23.0 4.9 20.3 4.6 16.9 6.1 24.1 8.7 31.9
16
Acronyms
ATM Auto Teller Machine

CDM Cash Deposits Machine
CNP Card not Present
DFI Development Finance Institutions
IVR Interactive Voice Response
MFB Microfinance Bank
NIFT National Institutional Facilitation Technologies (Pvt.) Ltd
OTC Over the Counter
PRISM Pakistan Real-time Interbank Settlement Mechanism
PSD Payment Systems Department
RTGS Real-Time Gross Settlement System
RTOB Real-time online Branches
The number of Banks, Branches, ATMs, POS, Registered Users and Payment Card figures wherever
mentioned in this Review are the position as on end Quarter basis whereas the volume and value of
transctions are during the quarter figure.The data of ATMs, POS is reported by the Acquirers whereas
Card-wise data of the same channles is reported by the Issuers, due to this differnce may exist. P is
used for provisional.
Disclaimer
In this Review, the statistics and statistical analysis are based on the data received from Commercial
and Microfinance Banks. Although a great deal of care has been taken to ensure publication of correct
information and data; This Review is being published for the purpose of information and analysis of
stakeholders. Further, there may be minor differences due to rounding-off numbers.
For queries, comments and feedback on this publication, please e-mail at

PSD-Data@sbp.org.pk

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Payment Systems Quarterly

October – December 2020 (Quarter-2, FY21)

Payment Systems Department

Payment Systems Review for Quarter 2 – FY21

Table-1: Comparative Summary of Payment Systems

*1.03 Million Transactions – More details can be found in Table 6

Quarter-2 Quarter-3 Quarter-4 Quarter-1 Quarter-2

E-Commerce Merchants Registered

3. Payment Systems Transactions – Key Insights

PRISM Transactions - Volume PRISM Transactions - Value

Figure 1 PRISM Transactions - Volume Figure 2 PRISM Transactions - Value

E-Banking Transactions (Volume) - Percentage Share

Call Centers/ IVR Banking

Figure 3 E-Banking Transactions (Volume) - Percentage Share

C. The channel-wise summary of these transactions is as under:

RTOB - Trend i. The RTOBs altogether processed 49.3

RTOB - Volume RTOB - Value

Figure 4 RTOB – Trend (RTOB Value on Secondary Axis)

Payment Processing Infrastructure ATM Transactional Share (%)

ATMs Cash withdrawals Intra-Bank Fund Transfer

Composition of Payment Cards D. As on December 31, 2020, the

Figure 7 Composition of Payment Cards

The Statistical Data of Payment Systems is appended on following pages.

Details as on December 31, 2020

Total Population3 208.31 million

Payment Systems Infrastructure as on December 31, 2020

3http://www.pbs.gov.pk/content/table-4-gross-domestic-product-pakistan-current-basic-prices (position as of June 30, 2020)

E-Commerce Merchants Registered

Table-4: Composition of Payment Cards

Table-5: Payment Systems Transactions–Summary

Table-6: PRISM Transactions

Table-7: Real-Time Online Branches (RTOBs) Transactions

Table-8: ATM Transactions

Table-9: Internet Banking Transactions

Table-10: Mobile Phone Banking Transactions

Table-11: Call Center/ IVR Banking Transactions

Table-12: ATM Transactions - By Payment Cards

Table-13: POS Transactions - By Payment Cards

Table-14: E-Commerce Transactions by Cards

ATM Auto Teller Machine

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