The State Bank of Pakistan is set to launch a QR code system under its Raast instant payment service, specifically for purchasing sacrificial animals during Eid al-Adha.
During the 17th “Mobile Commerce 2024” conference, Deputy Director Ahmed Sameer announced the anticipated introduction of the QR code system for the upcoming Eid. He shared that the State Bank is collaborating with 25 banks and has identified 50 key livestock markets to implement this payment solution, making transactions easier for the public.
Sameer emphasized the project’s significance for both livestock breeders and sellers, noting that it aims to facilitate secure transactions for purchasing sacrificial animals. This initiative is expected to help manage transactions worth approximately 550 to 600 billion rupees through digital banking during the religious festival.
He further explained that QR code payments could revolutionize the payment process by circumventing the high costs associated with installing point-of-sale (POS) machines. This system also empowers small-scale traders to accept online payments, thereby reducing the economy’s dependence on cash.
The QR code system will be rolled out in 15 cities, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad, where State Bank offices are located.
Yahya Khan, Chief Digital Banking Officer at Bank Alfalah Limited, pointed out that around 8 to 10 trillion rupees in cash are currently in circulation in Pakistan, a substantial amount relative to the country’s GDP. Additionally, Pakistan’s Finance Minister Muhammad Aurangzeb has suggested discontinuing the 5000 rupee note.
Mohammad Humayun Sajjad, CEO of Mashreq Bank, noted that the lower operating costs of digital banks, along with the reduction in physical branches, could enable these banks to offer higher profit margins to depositors, promoting digital banking and mobile financing.
