Karandaaz Pakistan, in collaboration with the State Bank of Pakistan (SBP), organized a high-level industry consultation in Karachi focused on shaping the future of digital payments through the design of a Digital Payment Escrow Utility. The event convened representatives from banks, fintech companies, e-commerce platforms, trade associations, and regulatory bodies to deliberate on how escrow-based mechanisms can strengthen trust, transparency, and accountability in Pakistan’s digital economy.
The consultation highlighted that for Pakistan’s digital commerce sector to grow sustainably, it is essential to build systems that prioritize consumer protection and business confidence. Escrow utilities, widely used in global digital markets, are increasingly recognized as vital instruments for enabling safe and reliable transactions. By securing payments until both buyers and sellers meet their obligations, escrow can mitigate risks, reduce disputes, and improve confidence in online transactions.
Participants underscored the importance of designing a framework that is not only commercially viable but also practical and inclusive. Businesses and consumers alike require mechanisms that balance efficiency with trust, ensuring that digital payments become a dependable alternative to cash. The discussion further explored how escrow solutions could bridge gaps in consumer confidence, particularly in the fast-growing e-commerce and digital services markets.
The State Bank of Pakistan shared its regulatory vision to foster innovation in the financial sector while ensuring stability and consumer protection. Officials noted that initiatives like the Digital Payment Escrow Utility align with SBP’s broader agenda to accelerate digital financial services, promote inclusion, and create an enabling environment for both established institutions and emerging fintech players.
Key organizations from across Pakistan’s financial and commercial landscape contributed to the discussions, including Bank Alfalah Limited, JazzCash, Daraz, foodpanda, PostEx, Allied Bank Limited, TCS, M&P Express Logistics, PayFast, SafePay, XStak Inc., LIMELIGHT, and the Chainstore Association of Pakistan. Industry platforms such as the Pakistan eCommerce Association and global networks like the Better Than Cash Alliance were also part of the dialogue, reflecting the wide-ranging interest in ensuring Pakistan’s digital payment infrastructure is built on trust and accountability.
KPMG, acting as a partner in the initiative, provided technical insights on how escrow utilities can be structured to meet both international best practices and the unique requirements of Pakistan’s financial ecosystem. Their input reinforced the importance of aligning the proposed framework with the realities of local market dynamics while maintaining flexibility for future innovations.
The consultation marks another step in Pakistan’s journey toward a digitally inclusive financial ecosystem. By placing trust and transparency at the center of its design, the Digital Payment Escrow Utility could emerge as a transformative tool for strengthening consumer confidence, enabling business growth, and supporting the expansion of e-commerce and fintech services across the country.
With collective insights from regulators, financial institutions, and industry leaders, Karandaaz Pakistan and the State Bank of Pakistan are moving closer to delivering a solution that addresses one of the most pressing challenges in digital commerce—ensuring that every transaction is secure, reliable, and trusted.
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