Pakistan’s financial landscape has witnessed a transformation in recent years. The country has enjoyed a sustained period of economic growth, recording a 5.3% increase in GDP during fiscal year 2016-17[1], its middle class is experiencing rapid growth and consumer confidence is soaring[2]. Despite these encouraging developments, Pakistan remains a largely cash-dependent society, which means that consumers and businesses often miss out on the convenience, safety and speed of electronic payments.
While cash is still the most common mode of payment, a new generation of start-ups and entrepreneurs are recognizing the advantages of digital payment solutions and integrating them into their business models. With more than 52% of Pakistan’s citizens under the age of 25, this young population’s appetite for innovation is giving rise to a thriving ecosystem of entrepreneurship, and pioneering technology from Mastercard is supporting its growth.
Mastercard has been operating in Pakistan for more than three decades. During this time the company has established strong business relationships with leading financial institutions, who recognize the fundamental role technological innovations play in meeting the evolving needs of their customers. Mastercard is delivering the solutions required to successfully embrace and integrate these advancements across every layer of their business models.
One such solution is Masterpass QR, the country’s first interoperable digital payment service. This groundbreaking technology by Mastercard allows consumers to use their mobile banking app to pay for in-store purchases, bill payments and online transactions. The easily deployable technology also makes cashless transactions a viable option for smaller businesses, who now have an alternative to the significant costs associated with accepting traditional card payments as they aim to reach more customer. This creates a more level playing field for start-ups, whilst also helping to attract a new generation of tech-savvy consumers.
Pakistan was the first country to roll out Masterpass QR, and has subsequently become the leading market for Masterpass QR payments globally as consumers and merchants alike recognize the benefits of QR payments. Today, the innovative and cost-effective payments solution is live with 10 issuers in the country.
The movement of money goes beyond just merchant and consumers, and Mastercard and its partners are collaborating to help it cross borders. Recognizing the needs of consumers in Pakistan, Meezan Bank partnered with HomeSend, a joint venture between Mastercard, eServGlobal and BICS. Homesend is a powerful remittance service aggregator that is transforming cross-border payments by bridging the gap between multiple sending and receiving parties.
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Pakistan has proven to be a hub for innovation, with a globally-connected and technologically-savvy youth population and booming drive for entrepreneurship. There is an unparalleled opportunity to harness the power of technology for economic growth in the country which can only be realized through collaboration and innovation.
Working with its partners, Mastercard remains committed to bringing customers in Pakistan fast, secure and convenient payment solutions, extending Financial Exclusion and helping drive the emerging digital economy to secure Pakistan’s position at the forefront of the global cashless market.
Pakistan is at the bottom of the list of innovative countries. There are some outright lies in this article.