Pakistan has experienced extraordinary changes in the digital payments landscape in recent years, with mobile banking contributing significantly to financial inclusion. Biometric mobile banking users in Pakistan will reach 16 million by the end of 2023, an increase of more than 1 million from the previous quarter, and internet banking users reached 11 million, according to a State Bank of Pakistan (SBP) report. . This increase shows a clear trend toward digital transactions that is reshaping the country’s financial landscape. His 15% increase in the number of e-wallet registrations to 2.7 million indicates a significant shift towards digital finance.
The report shows that mobile banking transaction volume has increased dramatically by more than 450 per cent from Rs 3 billion (US$ 29 million) in fiscal year 2012-13 to Rs 15 billion (US$ 143 million) in fiscal year 2022-23. It emphasizes what has been done. Mobile Digital payment services are becoming popular, as evidenced by the fact that his wallet account has exceeded 107 million. RAAST and Roshan digital account is one of the projects launched by former Prime Minister Imran Khan’s government to make Pakistan a cashless economy. By announcing the exposure draft of the Digital Banking Regulatory Framework, the State Bank of Pakistan is embarking on a new era of digital banking that will ensure improved access to finance and innovation.
research insights
Many changes have taken place in the banking industry between 2006 and 2021, as highlighted in a research study on the development of online banking services in Pakistan published by the South Asian Journal of Management Sciences. This study highlights the fact that banks are increasingly relying on technology, particularly internet-based services, to provide high-quality digital banking services. This study utilizes his SWOT analysis as a way to show that there are more opportunities for growth than threats in the provision of online banking services in Pakistan.
A study published by Science Direct in 2021 analyzes the digital divide in Pakistan, particularly as it relates to access and use of internet and information and communication technology (ICT) tools. We discuss a range of issues, including urban-rural inequalities, gender imbalances, and policy challenges that impede comprehensive digitalization plans.
Banking for everyone: Asaan Mobile Accounts Initiative
Underserved communities in Pakistan are benefiting from Asaan Mobile Accounts (AMA). Recent data reveals that only 30% of Pakistan’s total adult population has access to financial services, and the gender gap is wide. Despite this, the AMA reports that in 2023 alone he opened more than 7 million accounts, 35% of which were held by women. In line with this, Pakistan has committed to join her EDISON Alliance, which works towards digital inclusion.
There are people in remote and marginalized communities across Pakistan who believe the AMA will help them overcome their dependence on the traditional banking system. With the help of partner multinational banks, AMA provides a digital identity platform for programs such as the Benazir Income Support Program (BISP) to help low-income earners and families securely store their income and conduct simple transactions. Facilitate ways to provide financial support. handset after registering for an account using a biometric digital ID. This wide-ranging initiative will foster economic growth by giving poor people access to formal banking services that were previously unavailable to them.
Raast: Powering digital transactions
Raast, an instant payment system, has brought a new era of peace of mind to the masses across Pakistan when it comes to digital financial services. Raast currently acts as a central facilitator with seamless functionality, enabling 107 million fund transfer transactions in the second quarter of FY 2023-24 as of the last quarter, making it a major player in the digital payments space. It has shown a significant contribution to improving performance and efficiency. Additionally, Raast leverages his mobile devices to promote financial inclusion. Similarly, Raast ensures secure transactions for all users who require digital IDs, such as biometric IDs, strengthening trust and confidence in the digital economy and increasing participation. Research published by Innovation for Poverty Action 2024 shows that economically excluded users have limited awareness and usage of Raast, also indicating weaknesses in outreach and accessibility, but economically excluded users have limited awareness and use of Raast. It has been shown that users have high accessibility to benefit from Raast.
Mobile Banking: JazzCash and EasyPaisa are leading the way in Pakistan
In the growth of fintech payment gateways in Pakistan, JazzCash and EasyPaisa are occupying important positions not only for individual users but also as providers of business solutions. JazzCash is the fintech arm of telecommunications company Jazz, which has nearly 16 million monthly active users and offers secure online payments via QR codes. EasyPaisa, owned by Telenor, provides instant access to digital financial services with over 25 million registered wallets and over 8 million active users as of 2021. Additionally, both platforms are designed around easy-to-use features that allow you to create an account in minutes using your mobile number and his CNIC number, allowing remote access to your digital identity instruments.
A 2022 Express Tribune report highlights how mobile wallets like EasyPaisa and JazzCash have changed life in rural Pakistan. People traveling interstate for work can now access financial services by simply providing their mobile phone number, without having to have a traditional bank account. Through the accessibility of mini-branchless mobile banking accounts, previously excluded people, such as domestic helpers and digital entrepreneurs, gained autonomy in financial matters within marginalized communities.
The Daily Times reports that JazzCash and EasyPaisa are facing challenges. Regulatory restrictions prevent JazzCash and EasyPaisa from supporting international money transfer solutions, limiting growth opportunities for freelancers and e-commerce sellers. The lack of connectivity between the domestic fintech market and overseas fintech markets limits development. Therefore, as long as the economy is not expanding, inward inflow of dollars will remain suppressed.
Pakistan has adopted biometric mobile digital banking led by platforms such as JazzCash and EasyPaisa, increasing financial inclusion and enabling millions of new accounts and higher transaction volumes. Through initiatives like Asaan Mobile Accounts (AMA) and Raast Instant Payment System, the underserved are empowered. However, legal restrictions limit alternatives for international remittances and impede the growth of freelancing and e-commerce. Bridging domestic and international fintech markets is essential for long-term economic growth and fair financial development.
Article topics
Banking | Biometrics | Digital ID | Digital Wallet | Financial Inclusion | FinTech | Mobile Banking Applications | Pakistan
