E-commerce spending via cards surge by 27.4% in 2024

E-commerce transactions via card payments in Sri Lanka witnessed robust growth of 27.4 percent YoY valuing at Rs.367.6 billion in 2024, fuelled by the adoption of digital payment systems, according to the Central Bank’s Payments Bulletin for the fourth quarter of 2024. 

Data reveals a 23.8 percent year-on-year YoY) increase in e-commerce transaction volume through payment cards, reaching 121.8 million in 2024, up from 98.4 million in 2023. Debit cards dominated this space, accounting for 99.7 million transactions (18.4 percent growth), while credit card usage rose by 27.7 percent to 22.1 million transactions. In value terms, e-commerce spending via cards surged to Rs. 367.6 billion, a 27.4 percent jump from the previous year.  

Key drivers included the proliferation of mobile payment apps, QR code solutions, and enhanced card-based transactions, reflecting a shift toward cashless economies amid regulatory upgrades and technological advancements. 

Mobile-based platforms also saw significant traction. JustPay, a real-time payment app linked to bank accounts, recorded 7.5 million transactions in 4Q 2024 which is a 14.2 percent quarterly increase with values climbing 11.8 percent to Rs. 35.9 billion. The introduction of mandatory One-Time Passwords (OTPs) for transactions above Rs. 10,000 in April 2024 likely bolstered consumer confidence in secure digital payments.  

LANKAQR, Sri Lanka’s national QR code standard, continued its upward trajectory. Total QR-based transactions in Q4 2024 hit 308,000 in volume (up 55.7 percent) and Rs. 1.53 billion in value, driven by interoperability and a growing merchant base. By year-end, over 420,000 merchants were registered under LANKAQR, marking an 8.4 percent increase from 2023.  

Internet-based payments, including bill settlements and fund transfers, grew by 26.3 percent  in volume during Q4 2024. The Common Electronic Fund Transfer Switch (CEFTS), which processes real-time transactions, handled Rs. 4.6 trillion in Q4 alone which a 37.5 percent quarterly spike underscoring its role as the backbone of high-value digital commerce.  

The Central Bank attributed this growth to regulatory initiatives such as the ISO 20022-compliant RTGS system launched in March 2024, which streamlined large-value settlements. Additionally,  the rise in per capita digital transaction value to Rs. 787,207 (up 58 percent of GDP).