Did you know transactions worth over $8 trillion were done digitally in 2022? Yet, Pakistan lags in adopting digital payments. State Bank of Pakistan and ‘Karandaaz’ will jointly launch a digital payment system to facilitate digital payments.
Karandaaz and SBP are working together to move Pakistan closer to a digital economy where everyone can effortlessly use digital payments. A new digital payment system will be introduced, allowing people to purchase without cash.
What are Digital Payment Systems?
Digital payment systems have revolutionized how we handle financial transactions in today’s technologically driven world. These systems enable individuals, businesses, and institutions to conduct various financial operations electronically, providing convenience, efficiency, and security.
At their core, digital payment systems facilitate the transfer of funds from one party to another without physical cash. They encompass various methods, including:
Credit and Debit Cards: They allow users to make payments and withdraw cash electronically, with transactions recorded and monitored for security.
Mobile Wallets: Smartphone apps like Easypaisa, SadaPay, and Jazz Cash store payment information, enabling users to make contactless payments in-store and online.
Online Banking: Internet banking platforms allow users to manage their accounts, pay bills, and transfer funds digitally.
Peer-to-Peer (P2P) Services: Platforms like ‘Raast’ facilitate person-to-person money transfers effortlessly.
Cryptocurrencies: Emerging as a decentralized digital currency, cryptocurrencies like Bitcoin offer a borderless and secure means of payment and investment.
How Can Digital Payment Systems Benefit the People of Pakistan?
Provides access to banking services for unbanked and underbanked populations.
Allows individuals without traditional bank accounts to participate in the formal economy.
Reduced Cash Dependency:
Mitigates the risks associated with carrying and storing physical cash.
Reduces the likelihood of theft and fraud.
Efficiency and Convenience:
Streamlines financial transactions, including bill payments and remittances.
Enables swift and secure fund transfers, fostering economic growth.
Transparency and Accountability:
Creates a digital trail for transactions, reducing the potential for corruption. Enhances tax collection and government revenue.