Digital transactions hit 13.2b

Digital channels continued to gain traction as consumers increasingly adopted mobile banking apps, internet banking, and e-money wallets for everyday payments. Out of the 14.3 billion transactions conducted through formal banking channels, 13.2 billion transactions were conducted through digital channels, representing a year-on-year growth of 65%.

Furthermore, digital channels accounted for 92% of total retail payment transactions, up from 88% in FY25. Mobile phone-based solutions led digital transactions with over 11.1 billion transactions, registering a 79% growth, while internet banking portals processed 0.3 billion transactions, up 15% from the previous fiscal year.

The expansion of digital acceptance infrastructure at merchants/retailers' outlets further supported this growth. The POS network expanded to 337,791 terminals across 295,367 merchant locations, supporting nearly 1.5 million daily card payments compared to 1 million in the previous fiscal year.

E-commerce payments also continued to gain traction, with account-based online payments accounting for 96% of total e-commerce transactions conducted through banking channels. Branchless banking mobile app users increased to 99.1 million, while banks' mobile app users reached 30.4 million, highlighting the continued shift of everyday banking activities towards smartphone-based platforms.