Debit cards hold lion’s share in payment system

Credit cards have failed to gain currency in Pakistan as they hold a meagre 4 per cent share in the overall card payment system due to the high-interest rates banks charge to users, mainly dominated by males. The State Bank of Pakistan (SBP), in its third quarterly (January-March) review of Payment Systems released on Monday, stated with 37.1 million debit cards are accounting for 76.7pc of the overall cards in circulation in Pakistan followed by 9.2m Social Welfare (19.1pc), 1.9m credit cards (4pc) and 0.2pc prepaid cards. However, the quarterly report showed that the volume of overall e-banking transactions increased by 4.3pc while the value surged by 11.2pc. The report further said that as per the data reported by banks and MFBs, around 81pc of all debit card holders are male, 19.2pc female and less than 0.1pc fall under different categories. “Similar trend was noted in pre-paid and credit cards where a majority of the card holders are male,” said the SBP. However, in the social welfare cards segment, 69pc are female and 31pc are male, it added. Payment systems instruments adoption and acceptance of digital instruments have been increasing steadily, said the report.