State of Pakistan Digital Banking 2026: Three Licensed Entrants Leading the Cashless Shift

An analysis of Pakistan's top digital banks in 2026, including Easypaisa, Mashreq, and Raqami, covering retail services, Islamic banking, and micro-lending.

By: AXL Media

Published: Apr 17, 2026, 10:59 AM EDT

Source: Information for this report was sourced from Fintech News Singapore

The Emergence of a Regulated Digital Banking Tier

Pakistan's financial landscape has undergone a significant transformation since the State Bank of Pakistan first approved five digital retail banks in 2023. As of April 2026, three of these entities, Easypaisa Bank Limited, Mashreq Bank Pakistan Limited, and Raqami Islamic Digital Bank Limited, have moved into active operations. These institutions operate without physical branches, distinguishing themselves from conventional banks that merely offer mobile applications. The regulatory shift is part of a broader government strategy to transition toward a cashless society, supported by the Raast instant digital payment system which has processed approximately 72 million US dollars since its inception in 2021.

Market Leadership Through Financial Inclusion

Easypaisa Bank, backed by Telenor Group and Ant Group, currently maintains the most extensive presence in the market with over 55 million users. A critical component of its growth strategy involves financial inclusion for underserved demographics, with women making up 31 percent of its user base. The bank's mobile application serves as a comprehensive hub for retail services, including term deposits, QR payments, and computerized national identity card transfers. By offering physical and virtual debit cards accepted at over 16,000 ATMs and 90,000 stores, Easypaisa has positioned itself as a full, service mobile financial platform that rivals the reach of traditional institutions.

The Rise of Islamic-First Digital Solutions

Catering to the significant demand for Shariah-compliant finance, Mashreq Bank Pakistan and Raqami Islamic Digital Bank have introduced "Islamic-first" models. Mashreq NEO allows customers to open accounts in as little as five minutes using national identity card verification, offering both conventional and Islamic current profit accounts. Raqami, backed by Kuwaiti investment entities, structures all of its retail products, including savings accounts and term deposits, around Mudaraba and Qard principles. The recent acquisition of a commercial banking license by Raqami in February 2026 signals a strategic move beyond retail services into the broader corporate and business banking sectors.