Pakistan holds a massive potential for growth in digital payments, online transactions, and cash-less banking due to various reasons. This article discusses the scope and potential of digital payments. Furthermore, the answer to the query of how digital payment benefits Pakistan is also a part of this write-up.
Introduction to Digital Payments
Digital payments are payments done through digital modules. There is no physical cash involved in this transaction. Therefore, the digital payments are also known as the e-payments or electronic payments. The digital banking is also known as cash-free banking.
Around the globe, there is a massive increase in the adaptation of digital payment methods. Similarly. Pakistan has also witnessed the growth in the usage of these methods in the last few years. Let’s look up the potential of cash-free banking in Pakistan.
Pakistan’s Potential for Cash-free Banking
Internationally it is believed that Pakistan has a massive opportunity to grow economically through the adaptation of digital transactions. It is important to note that McKinsey predicted that the use of digital payments could improve the GDP by 7% in the Pakistan economy. They further put; this can be achieved by the creation of four million (4M) jobs in the adaptation process with a circulation of $250 million in the form of deposits.
Pakistan can become a cash-free nation through the steps of innovation, cyber-security, risk management, and fraud elimination while the increase of the users of internet via web or mobile devices. With this huge potential, you can see how digital payment benefits Pakistan.
Available Digital Payment Options in Pakistan
According to the latest reports issued by the State Bank of Pakistan (SBP), in 2022 Pakistan experienced internet banking users at 9.6 million, which shows a jump of 15%. Similarly, the country has witnessed the number of users of mobile banking apps to be 16.1 million, which is a massive jump of 30%.
In Pakistan, there are three markets of digital payments in Pakistan.
- Digital Commerce
- Mobile Point of Sale (PoS) Payments
- Digital Remittances
The country has also seen a rise in the digital banking systems. Digital wallets are one of the prominent parts of digital payments.
Some of the Best Digital Wallets for Pakistan Youth
Internet banking is done through mobile apps and web applications. There are also some virtual banks with digital wallets that give the freedom to make digital payments in Pakistan. Other options are QR payments, digital lending and others. Some of the famous and most active digital wallets are as follows.
- Naya Pay
- Sada Pay
- Jazz Cash
- Easy Paisa
Anyone can use these wallets. So, the students, who are doing online earning through freelancing or e-commerce can easily use a digital payment method to set a payment gateway for domestic and international monetary transactions. These wallets offer all banking services. Money deposits, transfers, bill splits, and mobile balance uploads are a few to name. Furthermore, the bill payments are also strong evidence of the power of digital payment and the benefits Pakistan receives.
These are also authorised virtual banking systems approved by the State Bank of Pakistan (SBP). Moreover, you can ensure secure payments and money deposits, in addition to safe logins. The physical banks are also now operating through digital apps. Hence, all banks are in the operations of digital payments and benefit Pakistan.
Benefits of Digital Payment Methods to the Economy
Now let’s discuss the advantages or benefits of digital payment methods in Pakistan. The market segments are discussed through benefits and advantages.
- Digital payment methods make it easy to proceed the micro and macro payments.
- Transactions can be done through various modules, including QR codes, mobile numbers, and scanning.
- Using digital payment methods is easier and swifter in comparison to the physical transaction.
- Digital payment benefits Pakistani consumers as domestic users, international users, consumers and business entities equally.
- Digital payment methods are cheaper to use as compared to cash transactions.
- E-payments are safer and more secure in comparison to the physical bank.
Conclusion
Digital payment benefits Pakistan in various ways. Moreover, this industry has a huge potential for growth and social advancements. With the passage of time, there are chances of advancement of IT infrastructure, communication development through the internet, adaptation of secure banking and the latest risk management and cyber security elements. Moreover, from account opening, biometric verification, and actual transactions, everything is way quicker in comparison to the cash-based banking and economic system.
