E-commerce transactions fall, paper-based deals rise

Despite mounting pressure on banks to go digital, the number of e-commerce transactions declined in the first half of the current fiscal year while the total e-banking value in the first quarter also dipped. The State Bank of Pakistan (SBP) on Tuesday issued both the first and second quarterly reports on the Payment System for 2022-23. The reports reflect that despite all efforts electronic payments still need the trust of the account holders. One of the key indications is the Banking Ombudsman’s reports showing that complaints have been increasing particularly about e-transactions. At the same time, the value of paper-based transactions significantly increased from Rs46.6 trillion in Q2FY22 to Rs54.8tr in Q2FY23, suggesting growing trust in paper-based transactions. “Number of e-commerce transactions in both quarters declined but the value increased by 11.6pc during Q1FY23 and 2.2pc in Q2FY23,” said the SBP reports. The increased value with a lower number of transactions indicates high inflation which slashed the value of PKR.