Pakistan Fintech’s Next Test: From Access to Use

Pakistan’s fintech reach is wide, but daily digital spending remains shallow. Industry voices say the real breakthrough will come when digital payments become cheaper, trusted, and routine enough to rival cash.

Read more: The Rise of Digital Banking in Pakistan: Can Fintech Replace Traditional Banks?

Pakistan’s fintech sector has made strong gains in expanding digital financial access, yet converting new users into regular digital transactors remains a key challenge, according to industry leaders and development experts.

A recent Asian Development Bank (ADB) review of Pakistan’s digital finance environment highlights that while millions now have access to mobile wallets, cash continues to dominate day-to-day payments. Factors such as transaction costs, limited trust, uneven connectivity, and regulatory complexity continue to discourage habitual digital use.

Industry executives note that affordability plays a decisive role, particularly for lower-income households and small merchants. Even modest fees can push users back toward cash, which is still viewed as instant and cost-free. Trust issues also persist, driven by concerns around fraud, data security, and transaction failures, especially among first-time and less digitally literate users.

Infrastructure gaps add to the problem. Inconsistent mobile internet coverage, power disruptions, and network outages reduce transaction reliability, making merchants hesitant to rely fully on digital payments. Fragmentation across wallets and banking platforms further weakens convenience, often forcing users to maintain multiple accounts.

While digital wallets have become important tools for government welfare payments, many recipients withdraw funds immediately rather than spending digitally. Analysts say this underlines the need for stronger consumer protection, better interoperability, lower costs, and sustained financial literacy efforts.

Experts argue that Pakistan’s fintech progress will increasingly be judged not by the number of accounts opened, but by how deeply digital finance becomes embedded in everyday economic activity.