KARACHI: With street crimes on the rise ahead of Eid ul Adha, the State Bank of Pakistan (SBP) is all set to introduce a QR code payment mechanism in cattle markets across the country, a move that will help people and traders make payments securely.
The digital payment mechanism aims to curb cash transactions and promote financial inclusion in a market estimated to be worth Rs 550-600 billion during the festival.
SBP is working with 25 banks to enable QR code payments in 50 major cattle markets nationwide, expanding the implementation of payments through the Raast instant payment system, the central bank said in a statement.
“The initiative is taken to help people and merchants make payments securely, besides helping banks tap into potentially more than Rs 550-600 billion worth of cattle purchases through digital banking on the annual religious festival.”
Ahmed Sumair, joint director of Payment System Policy and Supervision Department of SBP, said the central bank is working with banks to allow cattle markets and farmers to use QR code in the upcoming Eid ul Adha.
“We are working with 25 banks…and have selected 50 major cattle markets to enable the QR code payment method,” he said at the 17th Mobile Commerce 2024 International Conference.
Sumair said the markets have been identified in all 15 cities with SBP offices, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad and Hyderabad.
“We are covering only six cattle markets in Karachi this Eid (which falls in mid-June 2024). The project aims to solve various problems, including the hassle of cash transfer and payment for buying sacrifices.”
“Secondly, the project would help the integration of livestock farmers and expand economic inclusion through Raast,” he added. The SBP official said the QR code payment method will revolutionize the payment experience as the high cost of installing POS machines at merchants has its own limitations.
QR payment has also enabled small merchants to receive payments through online transactions, discussing the use of cash in the economy. Merchants can display a QR code to receive payments online in real-time and hassle-free.
It is important to mention that reducing the high level of currency in circulation is one of the strategic objectives of the SBP. which can be achieved by enabling digital acceptance points, through QR codes, in every nook and corner of the country.
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