SBP to Set Up a Rs 200 Million e-Payment Gateway Solution

A report issued by Pakistan Telecommunication Authority (PTA) has revealed that State Bank of Pakistan (SBP) is establishing an e-payment gateway solution. SBP will put modern technology to facilitate the users through internet and mobile banking.

State Bank of Pakistan said:

Banking has undergone immense transformation from the primitive physical brick & mortar to a modern paperless environment. Thus, implying a radical shift from conventional to electronic banking which has redefined the very functions of conventional banking.

How Will It Work?

SBP further says that online transactions and payments will be made from anywhere and they will be more secure than conventional ones. Both, local and global, transactions will be facilitated using the e-payment gateway by SBP.

An e-payment gateway will facilitate authorization of local and cross border transactions in such a way that local transactions will be routed, processed and authorized domestically and only cross border transactions will be routed via international payment schemes operating in Pakistan such as VISA, MasterCard etc. for authorization.

Critical details will be encrypted so that information flow is secure and any fraudulent activity is prevented.


Read More: ​Pakistan Soon to Get Digital Banks: SBP Official


SBP says the new system will “allow people to conduct transactions from across the globe with an internet connected computer within the comforts of their home.”

Cost and Benefit

The project will cost Rs 200 million in total. SBP, however, says that Rs 8 billion will be created through the project.

The money will be used to provide loans to low-income sector through banks. The report says that small loans provided to sectors will double once the project completes.

E-payment will be free from withholding tax that is usually applied on cash withdrawals. SBP, while explaining the benefits of an e-payment gateways, stated,

All local e-commerce transactions, with a payment gateway in place, will be routed and processed for authorization by using domestic channels. Thus, reducing the burdensome costs associated with the current authorization mechanism.


  • FacePalm

    Every department at state bank is creating their own unique payment system and platform and they all have no clue who is going to use it or how. Is it the central bank’s job to create payment systems and gateways, or is it their job to create policies in a manner they private sector comes in a plays this role. SBP creates policies so that no private player comes through and is now trying to be a commercial organization themselves.