Digital Payment methods are the ways of transferring money digitally. They allow for the instantaneous transactions and borderless transfer-of-ownership.
These methods are only accessible through computer, mobile and other digital platforms like ATMs. They are considered as the most stable and cheapest method of trading currency. All crypto-currencies are digital currencies but not all digital currencies are crypto.
An initiative of Digital payment in Pakistan
Payments through digital currency have changed the way businesses receive and customers make payment. If became mainstream the digital payment methods powered by apps like Keenu Wallet have potential to push Pakistan to a cashless economy.
The payment through cash is still a dominant way in Pakistan and is considered to be safe by many businesses. More than a half of population in Pakistan does not have access to traditional and mobile banking services. A small number of B2B electronic transactions are observed in Pakistan. According to reports just 21% of adults have a transaction accounts and only 7% among them are women.
According to World Bank Country Director for Pakistan Patchamuthu Illangovan an average Pakistani citizen performs just one digital transaction each year. In India, this number is five while in Indonesia, it is seven. However, he is quite hopeful that Pakistan has the ability to spur digital payment system.
Patchamuthu emphasize on adoption of digital payment methods for the ease of doing business
He also tweeted about the use of digital technology including e-payments
In a Twitter post he reportedly said, “To unlock the $36-billion digital finance potential of Pakistan, it needs a high-level commitment, faster payment gateways, lower costs and fast-track licensing for the Fintech sector and digitization of government payments.”
Strategy of State Bank of Pakistan
Later in 2019 The State Bank of Pakistan launched National Payment System Strategy (NPSS) in the presence of David Robert Malpass, the president of the World Bank.
David Malpass praised the new strategy and ensure the support of World Bank through the process and considered it as the most efficient and fast method.
It is expected that the National Payment System Strategy will boost the country’s GDP by 7% thereby creating 4 Million new job opportunities.
Different Digital Payment methods in Pakistan
Pakistan has shifted towards the digital money transfer methods through some of the widely used gateways
Easy paisa by Telenor in collaboration with Tameer Microfinance Bank offers quick and easy payments through mobile. It is the first digital payment method in Pakistan, users can transfer money recharge mobiles, buy data bundles, and do online shopping or pay utility bills. There is no doubt that Easy Paisa is providing their services to the user without glitch and error to the date.
JazzCash is operated in Pakistan by telecom company Mobilink. It is a mobile-wallet through which users can easily pay bills, recharge mobile and their data bundles. Many small business and corporations across the country use JazzCash for easy money transaction.
HBL Konnect is a product of large banking network HBL. It is not just the online payment service in Pakistan but it has also become the nation’s lifestyle because of innovation and the ever-growing payment method.
Digital wallets like Keenu Wallet are making their users cash free through apps. These are financial accounts that allow their users to transfer funds, track payment and many more through mobile app or computer. They offer a secure gateway for money transfer.