KARACHI: The value of mobile banking, internet banking and e-commerce transactions more than doubled in the third quarter of the current fiscal year (Q3FY21) compared to the same period of FY20, Bank of India said. state in its latest report released on Monday.
According to the quarterly payment system report, the number of Internet and mobile banking users increased significantly, up 30.5% and 20.3%, respectively, during Q3FY21 compared to the same period last year.
From January to March for FY21, bank customers carried out 309.5 million electronic banking transactions, valuing Rs 22.5 trillion and recording growth rates of 31% in volume and 29% in value during of the same quarter of FY20, according to the report.
Overall, the country’s total payment transactions increased by 2% in volume and 10% in value compared to the previous quarter.
During the quarter under review, the share of PRISM (Real Time Interbank Settlement Mechanism in Pakistan), electronic banking transactions and paper-based payment transactions were 64.5%, 13.3% and 22.2% in value, respectively. However, in terms of volume, the share of electronic banking transactions was around 75%, followed by 24.4% of transactions based on paper instruments.
“The deal value for PRISM increased from Rs94.9tr in the previous quarter to Rs109.3tr in the current quarter, showing a growth of 15%,” the report said.
PRISM has 50 direct participants, including commercial banks, MFBs, DFIs and the Central Depository Company (CDC). During the quarter under review, PRISM processed over one million transactions worth Rs109.4tr.
Overall usage of e-banking channels increased 4% in volume and 5% in value compared to the prior quarter.
The number of Internet and mobile banking users has also increased significantly in recent quarters. Internet banking users were up 10% from the previous quarter, while posting a 30% increase from the same quarter last year.
Similarly, mobile banking users grew 5% quarter-on-quarter, while posting a 20% increase over the same period last year.
E-commerce merchants are also on a downward trend over the past few quarters. Compared to the previous quarter, e-commerce merchants grew by 5%, however, compared to the same period last year, a staggering 62% growth was observed, according to the report.
The total number of ATMs in the country reached 16,175 at the end of the quarter. These ATMs collectively processed 153.5 million transactions worth around Rs2.1 tr. Despite the availability of other banking services on ATMs, the machines are mainly used for cash withdrawals in the country.
“In total, cash withdrawals through ATMs have the highest volume share of 96%,” the report said.
Most of the adoption of e-banking transactions has been seen in internet banking transactions and mobile banking transactions. Mobile banking transaction volume reached 51.7 million (up 144%) valuing Rs 1.3 tr (up 178%) from 21.2 million transactions worth Rs 467.5 billion at the same quarter of last year. The number of registered mobile phone banking users reached 9.8 million, an increase of 20 percent over the same period last year.
Posted in Dawn, June 29, 2021