Cash on Delivery kept Pakistani e-commerce alive for a decade — but 2026 is the year prepaid finally took over. Here is the data, and what your store should do about it.
The Big Number: 92% of Retail Transactions Are Now Digital
The State Bank of Pakistan's Payment Systems Quarterly Review for January-March 2026 records 3.7 billion retail transactions worth Rs168.8 trillion, up 9% on the previous quarter. Digital channels carried 3.41 billion of those transactions — 92% of retail volume by count.
Three years ago, COD was the "necessary evil" every Pakistani store depended on. In March 2026 the tide finally turned: digital-payment orders show return rates 15-20% lower than COD. When a customer pays via Raast or a wallet upfront, they enter a psychological contract with the seller. The buyer's remorse that once led customers to refuse packages at the doorstep largely disappears when the transaction is already settled.
Raast: The Instant-Payment Engine Powering the Shift
Raast, the State Bank's instant payment system, is the quiet star of this story. In the first quarter of 2026 it processed 742 million transactions worth Rs23.27 trillion, with person-to-person transfers alone at Rs18.88 trillion. More than 2.6 million merchants had been onboarded by the end of the quarter.
- Instant settlement: no more waiting days for a manual bank transfer to clear.
- Low cost: Raast push payments are rapidly displacing manual IBFT, which carried higher fees and delays.
- Ubiquity: every major Pakistani bank and wallet supports Raast, so the customer never needs to open a new app.
For an online store, Raast integration means faster cash flow, fewer abandoned checkouts and lower operational overhead than chasing bank-transfer confirmations.
Mobile Wallets Now Beat Cards — by a Wide Margin
Registered mobile banking and wallet users reached 132 million by end of March 2026, up 37% year on year from 96 million. In the payment split, JazzCash and Easypaisa together hold the majority of wallet volume, and combined they outpace card share by roughly three to four times.
The practical message for store owners is blunt: if your checkout only accepts cards, you are leaving most of the market on the table. A store that natively supports JazzCash and Easypaisa converts measurably better than one that only takes Visa or Mastercard. And Raast is the fastest-growing segment of all.
The Social Commerce Connection: Selling Where People Already Pay
In March 2026, more than 12% of all digital sales in Pakistan happened inside social apps — TikTok and Instagram shops — without users ever leaving them. Live-stream shopping events alone accounted for an estimated $40 million in sales, with conversion rates 3x higher than regular web traffic.
This matters for payments because social buyers expect instant, in-app checkout. If your brand sells on Instagram but forces customers to switch to a COD-only website, you lose the sale. The brands winning in 2026 pair social storefronts with wallet and Raast checkout — the least friction between "I like it" and "it's paid for."
BNPL: The New Credit Culture for High-Ticket Items
Buy Now, Pay Later has democratized big purchases. In March 2026, nearly 30% of high-end laptop and refrigerator sales were processed through installment plans. For an online store selling electronics, furniture or appliances, BNPL is no longer a nice-to-have — it is the difference between a customer clicking "buy" or closing the tab.
Pair BNPL with prepaid checkout and you attack both of Pakistan's historical blockers at once: affordability and trust.
What Your Online Store Should Do in 2026
- Offer all the big payment methods. Raast, JazzCash, Easypaisa and cards through a local gateway. Do not run card-only checkout.
- Make prepaid the gentle default. Offer a small discount or faster dispatch for prepaid orders. Do not force it — COD still has a role — but steer buyers toward it.
- Go mobile-first. Over 80% of Pakistani e-commerce orders are placed on mobile. A slow, desktop-first checkout kills wallet adoption.
- Add BNPL for high-ticket items. Installment options lift conversions on expensive categories dramatically.
- Integrate Raast for business-to-business too. Replace manual IBFT with instant Raast settlement for B2B invoices.
- Verify and track. Confirmed phone numbers and clear tracking reduce both COD refusals and prepaid chargebacks.
Every one of these touches your website build. Payment gateway integration, mobile-responsive checkout and wallet/BNPL plugins are exactly the kind of work a reliable web development partner handles so you can focus on selling.
Frequently Asked Questions
Is Cash on Delivery dying in Pakistan?
COD is falling but not gone. Digital channels now carry about 92% of retail transactions by count, and prepaid orders return 15-20% less than COD. The winning strategy is to offer both while steering customers toward prepaid.
What is Raast and why does it matter?
Raast is the State Bank's instant payment system, processing 742 million transactions worth over Rs23 trillion in early 2026 with 2.6 million merchants onboarded. For stores it means instant, low-cost settlement.
Which payment methods should a Pakistani store offer?
At minimum Raast, JazzCash, Easypaisa and cards. Mobile wallets beat card share by 3-4x. Add BNPL for high-ticket items.
How can a store reduce COD return rates?
Offer prepaid incentives, frictionless mobile checkout, phone verification and clear tracking. Digital orders return 15-20% less than COD.
View All BlogsAbout Global Dezigns — A Karachi-based web development and digital agency building fast, conversion-focused e-commerce websites for Pakistani businesses. From payment gateway integration to mobile-first storefronts, Global Dezigns handles the technical work so you can sell. Need a checkout that actually converts? Get in touch.
