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

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.

Key Enablers: What’s Making This Possible

Government & Central Bank Push: The State Bank of Pakistan (SBP) has rolled out policies to increase digital payment infrastructure (POS, QR) and has set targets for digital transaction growth.
Fintech Players & Wallets: Branchless banking (like Easypaisa, JazzCash, etc.), e-money wallets, and mobile banking apps are expanding their user base, dominating e-commerce payments.
Instant Payment Systems: Raast — Pakistan’s instant payment system — is processing hundreds of millions of transactions, making inter-bank and peer-to-peer payments faster and cheaper.
Merchant Adoption, QR & POS Expansion: More merchants are adopting POS and QR code payments, with a government push for Raast QR codes to be displayed at all retail outlets.
Blockchain / Regulation Steps: The Pakistan Crypto Council (PCC) has been formally established to regulate and integrate blockchain, digital assets, and emerging digital finance innovations.

What People Worry About: The Challenges & Risks

Security & Fraud: Digital payments are targets for phishing, fake QR codes, and social engineering. Trust depends heavily on strong security.
Privacy & Data Protection: Who stores transaction data and how secure is it? Clear laws on data protection, consent, and misuse are still developing.
Regulatory Clarity & Legal Framework: The legal status of cryptocurrencies has been a grey area. The PCC is a step forward, but rules on licensing, taxation, and AML/KYC are still needed.
Digital & Financial Inclusion: Many people still lack smartphones, reliable internet, or the digital literacy to use these services.
Fee / Cost Issues: High or hidden transaction fees can deter users and merchants from switching from cash.
Infrastructure Problems: Unreliable internet, electricity, and app stability can frustrate users and stall adoption.

Emerging Trends to Watch

Wider QR / Soft POS Penetration: More small vendors will adopt QR payments. Soft POS (turning phones into terminals) will reduce hardware costs.
Cross-Border / Remittance via Blockchain: Exploring blockchain to reduce fees and speed up international remittances.
More Regulation & Licensing: Stricter rules for crypto exchanges and wallet providers regarding AML/KYC and cybersecurity.
Focus on Merchant Ecosystem: A major push to increase the number of merchants accepting digital payments.
Financial Inclusion Initiatives: Efforts to bring more people into the formal financial system through branchless banking and digital literacy programs.
Potential Use of Blockchain for Other Finance Functions: Exploring smart contracts, asset tokenization, and decentralized finance (DeFi).

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).
Major expansion of Raast QR & Soft POS to small businesses in towns and cities.
More formalized regulatory frameworks for digital assets and blockchain.
More fintech innovations around embedded finance (BNPL, micro-loans, etc.).
Improved user trust as security measures and consumer protections improve.
More partnerships between banks, fintechs, and telecoms to expand access.

My Thoughts: What This Means for People

For regular users: Digital payments offer convenience and safety, but always check the security, fees, and support of any app you use.
For merchants: Adopting digital payments early can attract more customers, and government initiatives might offer support.
For entrepreneurs: There's huge room for growth in serving underserved areas, building user-friendly apps, and focusing on security.

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.