Digital payments adoption: Experts for stronger regulations
KARACHI: Speakers at the 19th International Conference, “Mobile Commerce-2026,” on Tuesday stressed the need for robust regulations, stronger system controls, and enhanced cybersecurity measures to build public trust and accelerate the adoption of digital payment solutions across Pakistan.
Representatives from commercial and digital banks, payment service providers, and technology companies emphasised that the rapid promotion of a cashless economy requires easier access to banking services, simplified digital payment systems, and greater financial and digital literacy, particularly among women and underserved communities.
The conference also highlighted the growing role of Artificial Intelligence (AI) in the financial sector, recommending its responsible and regulated use. Participants noted that while AI presents significant opportunities for innovation and efficiency, it also poses risks that require careful management. They stressed that future AI-driven banking solutions must be designed to better understand and respond to customers’ needs.
Financial and technology experts expressed satisfaction over the strong growth of digital payments in the country and predicted a major transformation of Pakistan’s financial landscape by 2030.
Chief Executive Officer of Raast Payment Pakistan, Ahson Saeed, revealed that the State Bank of Pakistan (SBP) instant payment system, Raast, is projected to process online transactions worth more than Rs140 trillion (approximately USD 500 billion) during calendar year 2026. The projected transaction volume exceeds the estimated size of Pakistan’s economy, which is expected to reach Rs125.55 trillion in FY2026-27.
He disclosed that the SBP is preparing to launch a new consent-based “pull payment” mechanism that will enable businesses and service providers to collect payments directly from customers’ bank accounts after obtaining prior authorisation. The system, currently undergoing testing, will be supported by tokenisation technology to further strengthen transaction security.
“Raast is currently processing around 10 to 11 million transactions daily. On peak days, the system handles transactions exceeding Rs500 billion. At the current growth trajectory, Raast is expected to process approximately Rs139.5 trillion worth of payments by the end of this year, equivalent to around 1.2 to 1.3 times Pakistan’s GDP,” Saeed said.
According to official data, Raast processed 646 million transactions worth Rs18 trillion during the second quarter (October-December) of FY2025-26, underscoring the remarkable pace at which Pakistan’s digital economy is expanding.
Saeed further stated that the central bank is introducing new payment capabilities built on tokenisation and consent-based architecture.
“As the ecosystem evolves, new players are expected to offer Payment Initiation Service Provider (PISP) solutions, allowing customer consent to be secured before payment execution and enabling payments to be initiated seamlessly. The system is currently being tested and is expected to be launched shortly,” he added.
Special Assistant to the Sindh Chief Minister on Information Technology, Ali Rashid, who attended the conference as chief guest, said that information technology is one of the fastest-growing sectors and requires proactive planning and policy support from both government and industry stakeholders.
He noted that the Sindh government is actively working on frameworks for digital and crypto assets, adding that the number of crypto investors in Pakistan has grown significantly and now exceeds the number of investors participating in the Pakistan Stock Exchange (PSX).
Chief Executive Officer of 1LINK (Private) Limited, Najeeb Agrawalla, said the company is celebrating the 10th anniversary of PayPak, Pakistan’s domestic payment card scheme, which has achieved substantial market penetration.
“We are planning to launch a PayPak credit card and introduce tokenisation-based payment transactions during 2026,” he announced.
Faisal Mahmood, Head of Digital Public Infrastructure at Karandaaz Pakistan, said Pakistan has already established the foundational digital infrastructure required to support the growth of digital payment systems.
“The key challenge now is how to generate economic value from this infrastructure. Our focus must shift towards increasing adoption and scaling digital payment systems to unlock their full economic potential,” he said.
During a fireside chat titled “The Rise of Digital Banks in Pakistan: Lessons from the Journey So Far,” Umair Aijaz, CEO of Raqami Islamic Digital Bank, and Muhammad Hamayun Sajjad, CEO of Mashreq Pakistan, discussed the challenges and opportunities facing digital banking in Pakistan.
The executives revealed that their institutions deliberately emphasised the word “bank” in their branding while downplaying the term “digital” to strengthen customer confidence and trust. The session was moderated by Najid Rahman, Secretary of the Pakistan Banks Association (PBA).
Opening the conference, Farrukh Ali Baig, Managing Director of BPC Banking Technologies Pakistan and Total Communications, highlighted the immense potential of digital commerce and said Pakistan was witnessing a remarkable transformation in its financial sector.
Copyright Business Recorder, 2026