The State Bank of Pakistan (SBP) is poised to introduce a QR code payment mechanism through the Raast Instant Payment System for the purchase of sacrificial animals during the upcoming Eid-ul-Azha festivities.
At the 17th conference titled “Mobile Commerce 2024,” SBP Deputy Director Ahmed Sumair revealed plans for the implementation of the QR system ahead of Eid. He stated that collaboration with 25 banks and selection of 50 major cattle markets are underway to facilitate QR code payments, aiming to streamline transactions for the masses.
Sumair emphasized the significance of this initiative for cattle farmers and the broader goal of expanding financial inclusion through Raast. He projected that digital banking could potentially facilitate transactions totaling Rs550-600 billion during the annual religious festival.
Highlighting the transformative potential of QR code payments, Sumair noted the limitations of traditional point-of-sale (POS) machines and emphasized the accessibility of QR codes for small-scale merchants, thereby reducing reliance on cash in the economy.
The QR code system will be rolled out across 15 cities, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad, where cattle markets will be established, coinciding with the presence of SBP offices in these locations.
Yahya Khan, Chief Digital Banking Officer of Bank Alfalah Limited’s Digital Banking Group, raised concerns about the high circulation of cash in Pakistan, suggesting discontinuation of the Rs5,000 notes. Meanwhile, Mashreq Bank CEO Muhammad Humayun Sajjad highlighted the cost-effectiveness of digital banks due to the absence of physical branches, enabling higher profit margins for depositors and mobile financing.
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