Meezan Bank is significantly intensifying its digital payments strategy by expanding its merchant network and accelerating the adoption of instant payment solutions. This initiative aligns with the rapid transition of the Pakistani economy toward a cashless environment. Recent data from the State Bank of Pakistan highlights that digital channels now facilitate approximately 92 percent of retail transactions, marking a definitive departure from traditional cash-based systems. As a frontrunner in the Islamic banking sector, Meezan Bank has solidified its position as a primary enabler of digital payment infrastructure and merchant acquiring.
The bank has successfully built a merchant base exceeding 50,000 members, with industry estimates indicating that average monthly transaction volumes have reached nearly Rs50 billion. Ahmed Ali Siddiqui, the Group Head of Consumer Finance and Digital Banking at Meezan Bank, emphasizes that this shift toward digital transactions is a critical economic necessity rather than just a technological upgrade. He notes that the digital transformation of the financial landscape offers a unique opportunity to improve transparency, enhance documentation, and support inclusive economic growth by bringing informal, cash-based businesses into the formal financial sector.
Pakistan currently faces several structural economic hurdles linked to its heavy reliance on cash, such as a low tax-to-GDP ratio and limited access to formal credit for Small and Medium Enterprises. While SMEs contribute nearly 40 percent to the national GDP, they often receive less than 10 percent of total bank credit. Industry experts believe that widespread digital payment adoption can bridge these gaps by creating reliable financial records and improving tax collection. Additionally, reducing the reliance on cash is expected to save the economy significant costs, as cash handling alone accounts for an estimated 0.5 percent to 1.5 percent of the national GDP.
To support this growth, Meezan Bank is aggressively deploying a range of digital acquiring tools, including point-of-sale terminals, QR-based payment systems, and specialized e-commerce solutions. A major component of this strategy involves deep integration with Raast, the instant payment system developed by the State Bank of Pakistan. This allows for faster, more secure, and low-cost transactions for both consumers and business owners. The bank has set an ambitious target to onboard an additional 140,000 merchants while expanding Raast acceptance across a network of over 40,000 physical POS terminals.
Innovation remains at the heart of the bank’s expansion efforts, with the introduction of instant QR code generation and soundbox devices that provide merchants with real-time audio alerts for successful transactions. These features are specifically designed to build trust among small retailers and micro-businesses. Market data suggests these efforts are paying off, with Raast-based merchant payments growing at a monthly rate of roughly 40 percent. By building a robust and Shariah-compliant digital ecosystem, Meezan Bank aims to strengthen its market leadership while contributing to the broader national goal of achieving a fully documented and cashless economy.
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