KARACHI:
The central bank of Pakistan is set to facilitate the purchase of sacrificial animals using a QR code payment mechanism through mobile phones and Raast, the instant payment system, in cattle markets across the country during the upcoming Eidul Azha.
The initiative aims to help both customers and merchants avoid the burden of carrying heavy cash amid security concerns. Additionally, QR payments could potentially enable banks to access cattle markets to the tune of over Rs 550-600 billion through digital banking during the annual festival.
Speaking at the 17th Mobile Commerce 2024 International Conference, Ahmed Sumair, Joint Director of Pakistan’s Payment Systems Policy and Supervision Department, said the central bank is working with 25 banks to implement QR code payments in 50 major cattle markets. ahead of Eid in June 2024.
“People can scan QR codes generated by merchants through mobile phones in Raast or through other mobile apps provided by commercial banks,” Sumair was quoted as saying by Total Communications, the conference organizer. The QR code payment method is also accessible on Raast via basic keypad phones, offering free financial transactions.
Although QR code payment systems have been available in Pakistan for some time, their non-interoperability has limited their usefulness. Raast has introduced an interoperable QR code, allowing people to make payments between different banks via mobile banking.
The SBP official said markets have been identified in all 15 cities with SBP offices, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad and Hyderabad. “We are covering six cattle markets in Karachi alone this Eid.”
The project aims to address various challenges, including the hassle of cash transfers and sacrificial payments. In addition, it seeks to integrate livestock farmers and promote financial inclusion through Raast.
The adoption of QR code payment methods is expected to revolutionize the payment experience, especially for small merchants who may not be able to afford the high cost of setting up POS machines.
In addition, QR payments allow small merchants to accept online transactions, reducing the reliance on cash in the economy. This move is in line with SBP’s strategic objective to reduce high levels of currency in circulation by expanding digital acceptance points nationwide.
Published in The Express Tribune, May 25u2024.
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