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SBP Mandates RAAST Payment System for E-Commerce by March 2025

The State Bank of Pakistan (SBP) has issued a directive mandating all banks and financial institutions to integrate the RAAST payment system for e-commerce platforms and online shopping businesses by March 31, 2025. This move is part of the central bank’s ongoing efforts to accelerate the adoption of digital payment solutions across the country and facilitate the transition towards a more digital economy.

As part of the new directive, banks are required to enable the RAAST Person-to-Merchant (P2M) digital payment acceptance services for businesses already connected to the banking system. This includes both online and in-store retailers, as detailed in the SBP’s circular. The integration of the RAAST system will allow merchants to process payments more efficiently, supporting Pakistan’s shift from cash to digital transactions. The directive also extends to newly onboarded merchants, with financial institutions mandated to ensure that RAAST P2M services are set up during the account opening process for these businesses.

The RAAST P2M service, a key component of Pakistan’s digital payment transformation, is designed to streamline and digitize merchant transactions. The system enables businesses to accept payments through a variety of methods, including Quick Response (QR) codes, RAAST Alias, International Bank Account Numbers (IBANs), and the Request-to-Pay (RTP) functionality. Additionally, the service ensures that businesses can process payments seamlessly across various access points, including mobile apps, internet banking portals, and USSD channels, providing greater accessibility for both merchants and consumers.

This push for RAAST integration aligns with the SBP’s broader vision to modernize Pakistan’s payment infrastructure. The central bank believes that RAAST’s widespread adoption will not only enhance operational efficiency for businesses but also offer consumers more convenient, secure, and cost-effective payment options. By reducing reliance on cash, the SBP hopes to drive financial inclusion, particularly for those in underserved areas, and enable more people to engage in the formal economy.

The deadline for full implementation of the RAAST P2M services is set for March 31, 2025. By this date, all banks and financial institutions must ensure that the RAAST payment system is available for both existing and new merchants. This initiative is expected to be a critical step toward realizing Pakistan’s vision of a cashless economy, promoting smoother business transactions, and strengthening the country’s digital payment ecosystem.

As the deadline approaches, the integration of RAAST will likely play a pivotal role in transforming Pakistan’s digital economy, providing merchants with an essential tool to improve payment processing and ultimately contributing to the broader financial ecosystem’s growth and development. The SBP’s commitment to fostering digital payment solutions marks a significant milestone in Pakistan’s financial landscape, reinforcing the central bank’s dedication to creating a more efficient, secure, and inclusive financial system for all.

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