The transition towards a cashless society can significantly impact Pakistan’s economy by reducing the informal sector, improving tax compliance, and fostering financial inclusion.
These insights were shared by Ali Irfan, Chief Experience Officer at JazzCash, at GSMA’s Digital Nations Summit in Islamabad. The panel discussion also featured Shoukat Bizinjo, Additional Director of Digital Financial Services at the State Bank of Pakistan; Maleeha Bangash, Consultant of Digital Banking at IFC; and Clive Chai, Head of Partnerships for South Asia at Meta, and moderated by Sabahat Bokhari.
The panel discussed the need for policy interventions to support a cashless future, including incentivising digital payments through reduced taxes on digital transactions, expanding the merchant base, and enabling RAAST QR payment acceptance points for merchants.
“Our shift from conventional banking to digital banking has been a two-decade journey that started in 2008 with the introduction of State Bank’s Branchless Banking regulations,” said Shoukat Bizinjo. We now host 37 million RAAST accounts, which has been a key enabler in the instant payments ecosystem.”
When commenting on the way forward for the digital financial services industry, Shoukat Bizinjo said: “Collaboration should be the name of the game. All industry players must work together to grow the digital economy.”
“The real challenge is navigating a hybrid country that is neither non-digital nor completely digital. We need the right infrastructure, a collaborative model, and an interoperability of systems to prosper,” said Maleeha Mimi Bangash, Consultant of Digital Banking at International Finance Corporation.
Pakistan has over 18,650 ATMs, but the backbone of digital financial inclusion lies in the 651,672 branchless banking agents nationwide, with JazzCash hosting nearly 40% of these agents. These agents are critical links between digital financial service providers and customers in remote and underserved communities.
In addition to hosting Pakistan’s largest branchless banking agent and digital wallets, JazzCash regularly runs financial awareness campaigns. These include a comprehensive rural engagement program that stretches across 90 villages at a time, with dedicated sessions to raise awareness by sharing the benefits of mobile data and money.
Ali Irfan outlined several key policy interventions to accelerate the adoption of digital financial services and forge a cashless society. He urged the need for universal access by integrating smartphones, SIM cards, and digital wallets or bank accounts into the national identity card issuance process, potentially funded through the Universal Service Fund.
To encourage digital payments, Ali suggested reducing taxes for both customers and merchants. He also advocated for the public sector to lead by example by mandating organizations to prioritize digital payments and phase out cash transactions. Irfan emphasized the need to digitize remittances by enabling mobile wallets to receive funds from around the globe.
Get the latest tech news, telecom insights, and product launches wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.