The Rise of Fintech & Digital Payments in Pakistan: QR Codes, Mobile Wallets, Blockchain & More

In every teashop, on every street corner, in apps on your phone — payments are changing. Cash is no longer king; fintech innovations are steadily weaving themselves into daily life in Pakistan. From QR codes and mobile wallets to blockchain-based regulation, a transformation is underway. But along with promise, there are challenges: security, regulation, trust, and access.

Here’s how things stand in 2025, what people love, what they worry about, and what we can expect by 2026.

What the Numbers Show: Digital Payments Growing Fast

In Q3 FY25, Pakistan’s digital payment ecosystem saw 16% growth in transaction volume and 22% growth in value. Mobile banking users rose to ~22.6 million; e-money wallet users grew ~12% to ~5.3 million; branchless wallet users reached ~68.5 million.

Retail transactions are going digital in huge volume: about 88-89% of all retail transactions by number are now processed via digital channels (mobile banking apps, wallets, etc.).

QR code payments are rising: millions of transactions per quarter in QR-payments (worth tens of billions PKR). POS terminals and merchants accepting digital/QR payments are increasing.

The government's Cashless Pakistan initiative seeks to boost digital merchants, expand wallet / mobile banking users, and move remittances fully into bank or wallet accounts (less cash pick-ups).

Key Enablers: What’s Making This Possible

Government & Central Bank Push

The State Bank of Pakistan (SBP) has rolled out policies and targets: increasing digital payment infrastructure (POS, QR), setting goals for number of digital transactions, mobile/internet banking users. Directives to retail outlets to display QR codes (Raast QR) are part of getting the infrastructure to merchants.

Fintech Players & Wallets

Branchless banking (like Easypaisa, JazzCash, etc.), e-money wallets, mobile banking apps are expanding user base. Wallets dominate many e-commerce payments. Digital wallet usage is surging.

Instant Payment Systems

Raast — Pakistan’s instant payment system — processing significant volumes (hundreds of millions of transactions) making inter-bank / peer payments faster, cheaper.

Merchant Adoption, QR & POS Expansion

More merchants (from big stores to small kiryana shops) are adopting POS and QR code payments. Retail POS transactions are increasing rapidly. The government is pushing for Raast QR codes to be prominently displayed across retail outlets.

Blockchain / Regulation Steps

The Pakistan Crypto Council (PCC) has been formally established to regulate / integrate blockchain, digital assets, and emerging digital finance innovations. This gives regulatory legitimacy to discussions around digital assets.

What People Worry About: The Challenges & Risks

Even as digital payments grow, many concerns remain:

Security & Fraud

Digital wallets / QR payments / POS are target points for fraud: phishing, fake QR codes, social engineering, unauthorized transactions. If someone gets hold of your mobile device, PIN, or wallet access, risk is real. Trust in fintech depends heavily on strong security.

Privacy & Data Protection

Digital transactions create a lot of data (where, when, how much). Who stores this data? How secure is it? Are there clear laws / regulations around digital data protection, consent, misuse? Some regulation is coming, but many users still worry.

Regulatory Clarity & Legal Framework

Blockchain / cryptocurrencies have been grey areas; oversight has often lagged behind adoption. The Pakistan Crypto Council is a step, but rules around digital assets, taxation, AML / KYC procedures, licensing are still being worked out. Delays or unclear rules can stifle innovation, or lead to misuse.

Digital / Financial Inclusion

Not everyone has a smartphone, good internet, or the digital literacy to use wallets, QR codes, or apps. Rural areas, older populations, less educated people are at risk of being left behind. Also, user trust and cost of transactions (fees) matter.

Fee / Cost Issues

Some apps / services charge fees for transactions or cash-in / cash-out. If costs are high (or hidden), many users prefer cash. Also, merchants sometimes shy away from POS / QR because of fees, hardware cost, or slow settlement.

Infrastructure Problems

Internet connectivity, electricity, backend stability (servers, apps crashing), dispute resolution (if transactions fail, refunds) — all these can degrade user experience. Without reliable infrastructure, adoption may stall or generate frustration.

Emerging Trends to Watch

Here are the newer things I see happening or picking up momentum, which might be mainstream by 2026:

Wider QR / Soft POS Penetration

More small shops / vendors will adopt QR-based payments (especially through Raast QR or wallet QR). Soft POS (turning phones/tablets into POS terminals without dedicated hardware) is being promoted to reduce cost.

Cross-Border / Remittance via Blockchain or Crypto-Inspired Tools

With many Pakistanis living abroad, remittances are massive. Using blockchain or more efficient digital routes to reduce fees / speed up transfers is under consideration. PCC and other bodies are exploring this.

More Regulation & Licensing

As blockchain / crypto get more attention, more clarity will come around licensing, oversight, consumer protection. Platforms will need to meet AML / KYC / cybersecurity standards. The Pakistan Crypto Council is central to that push.

Focus on Merchant Ecosystem & Acceptance

The government is targeting big scale-up in the number of merchants who accept digital payments; making Raast QR ubiquitous; more POS devices in smaller towns; partnerships to integrate payment acceptance into small retail.

Financial Inclusion Initiatives

More people being brought into the formal financial system via branchless banking, wallets; efforts to reduce barriers (device cost, documentation, usability). Also, outreach & education to build trust.

Potential Use of Blockchain for Other Finance Functions

Beyond payments: smart contracts, tokenization of assets, decentralized finance (DeFi) or semi-centralized versions, digital identity, recordkeeping, supply chain transparency etc. The regulatory bodies are exploring them.

What to Expect by 2026: Realistic Predictions

By mid-2026, I believe Pakistan will see:

• Digital payments covering over 90% of retail transaction volume (by number), though by value the shift will lag (because high-value cash or informal transactions still persist).
• Major expansion of Raast QR & Soft POS so that small businesses, stalls, and kiryanas in towns have QR payment acceptance.
• Regulatory frameworks for digital assets and blockchain more formalized: licensing, tax clarity, consumer protection. Crypto exchanges or wallet providers will need to meet stricter rules.
• More fintech innovations around embedded finance: buy-now-pay-later (BNPL), micro-loans via wallets, credit scoring via alternative data, loyalty / reward integration.
• Improved user trust as fraud/security measures improve; perhaps insurance or protection for wallet users.
• More partnerships between banks / fintechs / telecoms to bring digital payment tools to areas with less infrastructure. Possibly offline QR solutions (QR codes that work when internet is intermittent).

My Thoughts: What This Means for People

If you are a regular Pakistani user:

• Digital payments = great convenience, less need to carry cash, faster. Good for safety, speed.
• But you will want to check which wallet/app you use: security, fees, supported banks, refund/dispute support. Don’t assume every QR code is safe.

If you are a merchant, adopting digital payments (QR / POS) early could attract more customers; also government may support via subsidies or easier regulation.

If you are a developer / fintech entrepreneur:

• Big space to grow: underserved areas, multilingual apps, interface-usability, more trust-building.
• Need to focus deeply on security, compliance, and user experience.

Poetic Closing: The Promise & the Path

In Pakistan’s bustling markets, in the quiet of homes lit by phone screens, digital payments are becoming threads in the fabric of daily life. The promise is of speed, transparency, inclusion—money flowing like water, not weighed down by paper or middlemen.

But the path is steep: trust must be earned, rules must be clear, security must be strong, and many must be brought along—not left behind.

If fintech, wallets, QR codes and blockchains are tools, then people are the heart. As long as they feel safe, supported, and included, this rise won’t just change payments—it can help reshape opportunity in many lives.