Pakistan Payment System in Detail (2025 Update)

Pakistan's payments system has evolved rapidly in recent years, supported by both the traditional banking system and the rise of emerging digital payments platforms. Here's a detailed breakdown of the country's payments ecosystem:

I. Core infrastructure

  1. National Clearing House System (NIFT)
  • Handled national cheque clearing (average daily volume of over 500,000 transactions)
  • Launch of instant settlement service (NIFT Instant) in 2022

  1. Pakistan Real Time Accounting System (Raast)
  • Central bank-led instant payment system (live in 2021)
  • Support mobile phone number transfer / P2P free transfer
  • Average daily trading volume crosses Rs 20 billion (2023 data)

II. Mainstream payment methods

Bankcard Network:

  • Visa/MasterCard coverage in cities up to 78%
  • UnionPay increases card issuance with local banks by 40% annually

Mobile Wallet:

  1. JazzCash (over 40 million users)

    • Functions: phone bill recharge/bill payment/cross-border remittance
    • QR code payment covers 350,000 merchants

  2. EasyPaisa (owned by Telenor)

    • Over 80,000 agent outlets
    • SME loan disbursement crosses Rs 50 billion

Bank App:

III. Emerging payment trends

1. The Rise of Digital Banks (Neobanks)

  • NayaPay & SadaPay(Received EMI licence from RBI):
    • Provides virtual Visa cards, P2P transfers, corporate payment solutions
    • NayaPay has over 500,000 users, mainly for freelancers and SMEs
  • Keenu (UBL Digital): Mainly branchless banking services with AI customer service support

2. BNPL (buy now pay later) growth

  • Platforms such as QisstPay & CreditBook partnering with e-commerce players (Daraz, Zameen) to offer instalment services, growing at a CAGR of 120%

3. Cross-border payment optimisation

  • Ria Money Transfer & Wise enters Pakistani market, reduces remittance fees to 1%-3% (5%-7% for traditional channels)

IV. Regulatory framework and challenges

✅ Progress point:

  • SBP (Central Bank of Pakistan) promotes financial inclusion policy, targeting adult account holdings to 651 TP3T by 2025 (currently around 551 TP3T)
  • Raast system integrates government subsidy disbursements (e.g. BISP poverty assistance payments) and reduces intermediary corruption

⚠️ Existing problems:

  1. cash-dependent: Cash transactions still account for 20%+ of GDP, digital payments underpenetration in rural areas
  2. Fraud risk: 2023 Report Shows Mobile Wallet Fraud Increasing 35% Year-Over-Year
  3. Interoperability Limitations: Direct transfers between some e-wallets are not possible

V. Future prospects

🔮  [Projected direction]::
| Areas | Key Developments
|————|———————————-|
| CBDC | SBP Plans to Pilot Digital Currency 'Digital Rupee'
| AI Risk Control | Biometric authentication prevalence (e.g. fingerprint/face recognition)|
| Super Apps | JazzCash or Careem Integration for more life services |

💡  [Recommendation]::
→ trader: Access to Raast reduces transfer costs
→ consumers: Prefer PSO/PCI-certified payment apps for fraud prevention