Avanza Group and Premier Systems are all set to establish a private E-commerce payment system to connect banks with merchants and traders in Pakistan to provide fast and easy payment services to customers.
According to the officials, the payment system is being set up with an initial investment of Rs. 350 million including a license fee of Rs 200 million and Rs. 150 million for providing services in three spaces.
The payment system will deploy an E-commerce and M-commerce payment gateway to merchant and customers. APPS will serve as a shared payment system to work on any platform, similar to 1Link, which connects ATM machines of different banks.
In this regard, Avanza Group and Premier Systems signed an agreement recently to establish Avanza Premier Payment Services (APPS). The two organizations aim to create synergies that enable APPS to cater to the rapidly evolving digital landscape in Pakistan.
There are hundreds of online stores in the country which could increase to thousands as retailers including grocery stores, pharmacy, restaurants avail this service and facilitate their customers, said Mahmood Kapurwala, CEO, Avanza Group.
The digital financial service will also cater to service sectors including thousands of schools and hospitals which can utilize the new payment system for financial transactions. Hence, the system will play a pivotal role in the documentation of the economy, he added.
CEO, Mr. Adnan Ali presented the end-to-end technology stack that would help APPS to move Pakistan towards a cashless landscape by digitizing major institutions such as merchants, schools, billing industries, mutual funds & other corporate entities by providing a secure hassle-free digital experience.
Our economy is still reliant on the cash on delivery (COD) model with our e-commerce industry consisting of 90% COD indicating that Pakistan is yet to accept digitalization, he added.
The launch of APPS in Pakistan will spur innovation in the domestic market by encouraging the community to pay using digital means but also make digital payments easier and widely available for banking customers’ e-commerce enablement, he said.
S. Arshad Raza, CEO, Premier Systems, said,
We have many international partners, but now we have a domestic player embracing the digital economy and enriching it by providing substantially convenient payment solutions. Pakistan is at the cusp of a digital revolution and we are proud to be part of that drive.
Our objective is to help businesses and consumers alike to overcome payment hurdles and make Pakistan a proud member of the growing digital arena, he added.