Branchless banking transactions crossed 52 million mark during July-September 2013, which led total value of transactions to reach Rs. 224 billion showing 16% growth in numbers and a notable 29% growth in value during the quarter, said State Bank of Pakistan.

The network of agents facilitating the BB industry across the country reached 110,214 agents, however, most of the growth – both in transaction number and value – came from shared agents than exclusive agents.

During the period under review, 355,574 new accounts were opened and the cumulative BB accounts grew to 2.97 million, said the state bank.

Increased market competition is prompting the new players to strongly pursue market share while early providers are introducing strategies to stay ahead. Cumulatively in terms of volume of transactions, the new players captured a share of 11.3% of total transactions in the market (4% more share than last quarter), while EasyPaisa and Omni remained market leaders with shares of 61% and 28% respectively.

M-wallet deposits‘ value of BB players currently stood at Rs. 2.32 billion. Compared to last quarter, the deposits witnessed an overall reduction of Rs. 71.5 million, particularly from level 0 accounts whose deposits shrunk by 33%.

The withdrawals were mainly attributed to G2P payments made in June and July 2013 under the Income Support Program as well as seasonal outflow related to Eid festivities during the month of August 2013.

Meanwhile, OTC transactions, with a share of 81% in overall number of BB transactions still dominated over m-wallet transactions which have taken up a share of 14%. However, a slight pickup of 2% in m-wallets transactions in comparison to last quarter has been observed during July-September 2013.

Mobile top up payments with a share of 35% remained the largest contributor to the volume of m-wallet transactions. Further, utility bill payments via m-wallets sharply rose by more than 100% from last quarter after a key player incentivized these payments by waiving off the linked service charges.

With each new quarter, the branchless banking industry is getting competitive; however its biggest test remains moving beyond money transfer and bills payments, and to accelerating registration and usage of customers‘ m-wallets.

The BB market, currently consisting of eight players, is gradually becoming competitive and innovative. According to the State Bank, international consultants from World Bank testified in a workshop held at SBP in December 2013 that SBP’s policy framework for BB and financial inclusion is in sync with the best approach for optimally managing linkages between financial inclusion and central banks’ traditionally core objectives of financial stability, financial integrity, and consumer protection.

Here are the key highlights again: