In a significant move toward digitizing the micro-merchant landscape in Pakistan, 1LINK has announced a strategic partnership with Khushhali Microfinance Bank to launch the 1GO Raast Person-to-Merchant service. This collaboration marks a major step for the microfinance sector, as it integrates the country’s premier instant payment system with one of its largest micro-lending institutions. By going live on the Raast P2M platform, Khushhali Microfinance Bank is enabling its extensive network of small business owners and merchants to transition from cash-based transactions to a secure, digital-first payment ecosystem. This initiative aligns with the national goal of increasing financial documentation and reducing the economy’s reliance on physical currency.
The deployment of this service allows Khushhali Microfinance Bank merchants to seamlessly accept digital payments through Static QR functionality. Unlike traditional Point of Sale terminals which can be costly for small-scale vendors, Static QR codes provide a low-cost, high-efficiency alternative for accepting instant transfers. Customers simply scan the QR code using any Raast-enabled banking app to complete a transaction, ensuring that funds are transferred immediately into the merchant’s account. This convenience is expected to drive higher adoption rates of digital payments across various regions of Pakistan, particularly in underserved areas where Khushhali Microfinance Bank maintains a strong operational presence.
The formalization of this partnership took place during a high-profile signing ceremony attended by senior leadership from both organizations. Representing Khushhali Microfinance Bank were Mr. Aameer Karachiwalla, President and Chief Executive Officer, and Mr. Aftab Alam, Chief Business Officer. From the 1LINK side, the ceremony was led by Mr. Najeeb Agrawalla, Chief Executive Officer, and Mr. Hassan Shahid, Head of Schemes. The presence of these key executives underscores the strategic importance of the 1GO Raast P2M service in the broader context of Pakistan’s digital transformation. Both parties emphasized that this is not just a technical integration but a mission to empower small entrepreneurs with modern financial tools.
For the microfinance industry, the introduction of Raast P2M services offers a transformative way to manage credit risk and business growth. When merchants accept payments digitally, they create a verifiable transaction history that banks can use to assess creditworthiness more accurately. This “digital footprint” is crucial for micro-merchants who often struggle to access formal credit due to a lack of documented income. By facilitating these digital flows, Khushhali Microfinance Bank is effectively building a bridge between daily retail activity and advanced financial products like business expansion loans and insurance, thereby strengthening the overall resilience of the small business sector.
1LINK’s 1GO initiative serves as the technical backbone for this rollout, ensuring that the QR payment infrastructure is interoperable across different banking platforms. This means that a merchant at Khushhali Microfinance Bank can accept payments from a customer of any other bank in the country without compatibility issues. This level of interoperability is a primary driver of the Raast ecosystem’s success, making digital payments as simple and universal as handing over a cash note. The collaboration reflects the shared vision of both 1LINK and Khushhali Microfinance Bank to push the boundaries of what is possible within the domestic financial grid.
As the 1GO Raast P2M service goes live, the focus will shift toward merchant education and nationwide onboarding. The ease of use associated with Static QR codes is expected to lower the barrier to entry for street vendors, kiryana stores, and small-scale service providers. By providing a faster and more convenient transaction method, the partnership is set to play a pivotal role in strengthening the digital payment landscape of Pakistan. This milestone serves as a testament to the power of institutional collaboration in driving financial inclusion and modernization within the country’s BFSI sector.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
