Preparing for Eid al-Adha just got a modern twist in Pakistan as the State Bank is gearing up to introduce a QR code system for purchasing sacrificial animals.
This move is part of the Raast instant payment service, set to simplify transactions during the festive season.
The Convenience of QR Codes
At the recent “Mobile Commerce 2024” conference, Ahmed Sameer, Deputy Director of the State Bank, announced the upcoming introduction of QR code payments for Eid purchases.
With this system, buyers and sellers can securely transact without the need for cash, ensuring a smoother experience for all parties involved.
A Boon for Livestock Traders
The initiative holds significant importance for livestock breeders and sellers, offering them a streamlined payment solution.
During Eid, transactions for sacrificial animals peak, with estimates suggesting digital banking could handle purchases worth 550 to 600 billion rupees, marking a substantial shift towards cashless transactions.
Empowering Small-Scale Traders
One of the notable benefits of the QR payment system is its accessibility to small-scale traders.
By allowing them to accept online payments, it reduces reliance on cash, fostering financial inclusivity and contributing to the digital economy’s growth.
Expansion and Impact
Initially, the QR code system will be activated in 15 cities across Pakistan, including Karachi, Lahore, and Islamabad. This strategic rollout aims to maximize accessibility and adoption, catering to areas where State Bank offices are present.
Towards a Cashless Economy
The move towards digital payments aligns with broader efforts to reduce cash circulation in Pakistan. Currently, around 8 to 10 trillion rupees are in circulation, a figure that policymakers are keen to decrease, citing its disproportionate ratio to GDP and cash.
Looking Ahead
As digital banking continues to evolve, stakeholders envision a future with lower operating costs, fewer physical branches, and increased profitability for depositors.
This transition holds the promise of not just revolutionizing Eid purchases but transforming the broader financial landscape of Pakistan.
