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SBP Issues Licenses to Four Financial Institutions to Boost E-Payment Systems
SBP issues licenses to 4 financial institutions to boost electronic payments, as the e-wallet sector sees a 163% increase in accounts.
ND
by News Desk
2024-11-06
SBP Issues Licenses to Four Financial Institutions to Boost E-Payment Systems

The State Bank of Pakistan (SBP) has issued licenses to four financial institutions as part of its ongoing efforts to modernize and expand electronic payment systems across the country. These licensed institutions will participate in a six-month pilot project aimed at enhancing digital financial services in Pakistan, underscoring the growing adoption of e-payments and financial technology.

 

The central bank has approved the establishment of Electronic Money Institutions (EMIs), Payment System Operators (PSOs), and Payment System Providers (PSPs) in principle, signaling its commitment to fostering a more inclusive and efficient digital payment ecosystem. Currently, three electronic payment institutions are in the final stages of their pilot projects, while three other financial technology firms have already been given approval to launch pilot operations.

 

Digital Finance Revolution Gaining Momentum

 

This move is part of Pakistan's broader push towards digital finance, with electronic payments gaining rapid momentum across the country. As of September 2024, SBP data shows that the e-wallet sector has seen a substantial rise in usage, with 4.2 million e-wallet accounts opened and 4.6 million payment cards issued through these e-wallets. This surge highlights the demand for more accessible, efficient, and secure digital payment solutions in Pakistan.

 

The e-wallet sector alone has recorded over 80 million transactions worth Rs 232 billion. This marks a remarkable 163% year-on-year increase in the number of e-wallet accounts and a 167% rise in the total transaction value, demonstrating the growing appetite for digital financial services among consumers and businesses alike.

 

E-Payment Expansion and Economic Impact

 

The surge in electronic payments is a clear indication of the growing importance of digital finance in Pakistan. As mobile and internet penetration increases, more people are turning to digital wallets, online banking, and mobile payment platforms to manage their finances, make purchases, and send money. This shift is helping Pakistan move towards a more cashless economy, with digital payments offering greater convenience, security, and transparency compared to traditional cash-based transactions.

 

The government and the central bank's support for the development of electronic payment systems reflects a larger vision of financial inclusion, economic digitization, and reducing the reliance on cash. As more financial institutions and fintech companies enter the market, competition is expected to drive further innovations and improvements in the digital payments landscape.

 

Future Outlook for Digital Payments in Pakistan

 

With the ongoing pilot projects and the continued expansion of digital payment institutions, Pakistan is well-positioned to see further growth in this sector. The push towards e-payments is expected to bring benefits for both consumers and businesses, including faster transactions, reduced transaction costs, and enhanced financial access for underserved communities.

 

The central bank's licensing initiative and the ongoing success of e-wallet platforms are important steps toward building a robust and secure digital financial ecosystem in Pakistan. As the pilot projects progress and more fintech companies receive approval to operate, the adoption of electronic payments in Pakistan is expected to reach new heights.

 

Conclusion

 

The State Bank of Pakistan’s efforts to promote electronic payment systems are paying off as the e-wallet sector continues to grow rapidly. With a significant increase in digital transactions and the launch of several fintech initiatives, Pakistan is set to become a leader in digital finance in the region. The future of payments in Pakistan is undoubtedly digital, and these latest initiatives from the SBP are a key driver in realizing this vision.
Tagged:

SBP

PakistanFinance

DigitalPayments

FintechPakistan

EwalletGrowth
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