Pakistan’s fintech sector has expanded digital access over the past decade, but the harder task is getting people to use digital payments in everyday life as cash retains a strong grip on daily commerce, Pakistan’s The Tribune reported, citing an Asian Development Bank (ADB) assessment and industry executives.
“The real challenge for fintech in Pakistan is moving from access to everyday usage,” Khayyam Siddiqi, head of communication and customer care at JazzCash, told The Tribune.
He said digital payments displace cash only when they are affordable, trusted and “embedded in daily life”.
JazzCash’s scale underscores how far the market has come. The company has more than 55 million customers, processes over 13 million transactions a day and handled 15 trillion rupees in value during 2025, according to figures.
But industry leaders say scale alone has not produced a lasting shift in consumer behaviour.
Cost sensitivity remains a central obstacle, the ADB noted in its December 2025 report “Unlocking the Potential of Fintech in Central Asia”.
For low-income households and small merchants, even small transaction fees can deter digital payments, while cash is still viewed as free, immediate and reliable.
Trust gaps also limit usage. Despite wider awareness of mobile wallets, concerns over fraud, data misuse and failed transactions persist, with first-time users in lower-literacy segments especially vulnerable to phishing and social engineering scams.
Analysts say stronger consumer protection, faster dispute resolution and sustained awareness campaigns are needed to build confidence.
Infrastructure weaknesses add friction, particularly outside major cities, where uneven mobile internet, network disruptions and electricity outages can make digital payments unreliable.
Interoperability is another sticking point: a fragmented ecosystem forces users to juggle multiple wallets and merchants to manage multiple acceptance tools, weakening network effects.
Regulatory complexity and high compliance costs can slow product launches beyond basic payments, while tighter global funding conditions have made it harder for smaller startups to invest in security and expansion, the report said.
Digital wallets have become important channels for government welfare disbursements, helping familiarise beneficiaries with digital transactions, but many users still cash out immediately, highlighting the gap between access and habitual use.
