On January 11, 2024, Raqami Islamic Digital Bank (RIDB) and Euronet Pakistan sealed an exclusive agreement to promote digital payments in Pakistan. This collaboration comes after RIDB obtained a no objection certificate (NOC) from the State Bank of Pakistan (SBP) in January 2023 to establish the country’s first Islamic digital retail bank.
In September 2023, SBP granted In-Principal Approval (IPA) to RIDB and four other contenders for the digital bank license. Currently in the process of operational readiness for pilot testing, RIDB aims for a subsequent commercial launch as a digital retail bank.
Euronet Pakistan, a division of NASDAQ-listed Euronet Worldwide (EEFT), a global leader in secure electronic financial transactions, will provide services such as Payment Switch, Card Management Solution, Credit Cards, ATM Controller, POS/E-Commerce Acquiring, Fraud Management Solution, and Card Tokenization to RIDB.
Procuring a payment system is a strategic move for a bank, facilitating a range of financial transactions. RIDB plans to leverage Euronet’s system for integration between payment systems, core banking, non-core applications, and digital channels. This move aims to enhance operational efficiency, reduce costs, and ensure a seamless digital banking experience for RIDB customers.
Kashif Gaya, CEO of Euronet Pakistan, expressed excitement about being selected as the technology partner for RIDB and playing a pivotal role in the launch of Pakistan’s first Islamic Digital Bank. Umair Aijaz, CEO of RIDB, emphasized the significance of the exclusive agreement with Euronet as a key partnership laying the foundation for the country’s first Islamic digital bank.
Nadeem Hussain, Coach RIDB, highlighted the government’s efforts to increase digital financial services’ availability in Pakistan, with digital transactions accounting for 80% of total retail transactions. The partnership with Euronet is seen as a strategic move to rapidly achieve scale and meet the expectations of a digitally savvy clientele in this evolving ecosystem.
RIDB, one of five aspirants for the digital retail bank license, is poised to receive the license from the State Bank of Pakistan under the Licensing and Regulatory Framework for Digital Banks 2022, pending operational readiness and a successful pilot phase.
