The State Bank of Pakistan (SBP) is gearing up for Eid al-Adha by introducing a QR code payment system through its Raast instant payment service. This initiative aims to revolutionize the way people purchase sacrificial animals during the upcoming festival.
At the 17th “Mobile Commerce 2024” conference, Ahmed Sameer, Deputy Director of the SBP, announced the launch of the QR system for this Eid. He revealed collaborations with 25 banks and the selection of 50 major cattle markets to facilitate these digital transactions.
Sameer emphasized the project’s benefits for both livestock farmers and buyers, promoting secure and convenient transactions. Additionally, the system has the potential to shift Rs. 550-600 billion worth of Eid al-Adha animal purchases to digital banking, significantly impacting the sector.
The QR code system offers a simpler alternative to Point-of-Sale (POS) machines, making it easier for smaller vendors to accept online payments and reducing reliance on cash. The initial rollout will focus on 15 major cities, including Karachi, Lahore, and Islamabad, where SBP offices are located.
Yahya Khan, Chief Digital Banking Officer at Bank Alfalah Limited, stressed the need to discourage cash transactions, suggesting the discontinuation of the 5000 rupee note to promote digital payments.
Mohammad Humayun Sajjad, CEO of Mashreq Bank, highlighted the broader benefits of digital banking, including lower operating costs for banks, reduced branch needs, and higher profit margins for depositors through mobile financing options.
The State Bank’s initiative aligns with its ongoing efforts to promote digital banking solutions and enhance financial inclusion, particularly during peak economic seasons like Eid al-Adha. This cashless approach promises a smoother and more secure experience for both buyers and sellers of sacrificial animals.