ISLAMABAD: 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.
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.
Copyright Business Recorder, 2024