In a bid to accelerate the adoption of digital payments in Pakistan, the State Bank of Pakistan (SBP) is introducing a simplified merchant account opening process. Deputy Governor Dr. Inayat Hussain shared this development with the Senate Standing Committee on Finance, stating that the new initiative will significantly ease the onboarding process for merchants.
One of the primary changes involves reducing the length of account-opening forms from the current 16 pages to a concise 2-3 page format. This adjustment aims to eliminate unnecessary complexities, making it easier for merchants to access digital payment systems and enhance their financial inclusion.
The Senate committee has set a deadline of June 30, 2025, for the implementation of a comprehensive digital payment system. To ensure progress, the committee has directed the Ministry of Finance and SBP to submit a detailed progress report within six months.
Dr. Hussain further revealed that SBP is collaborating with key organizations such as Karandaaz and the Pakistan Banks Association to incentivize the use of digital payment platforms, including QR code systems. These partnerships aim to encourage both merchants and consumers to transition from traditional cash transactions to seamless digital alternatives.
Highlighting the economic impact of current payment systems, the Deputy Governor disclosed that $138 million was paid in fees for bank card usage last year. Simplifying the merchant onboarding process is expected to reduce such costs and promote the adoption of cost-effective digital solutions.
In addition to discussions on digital payments, the Senate committee unanimously approved an amendment to the State-Owned Enterprises (SOE) Act, 2024. This amendment provides clearer governance guidelines for state-owned enterprises, particularly focusing on public sector companies where the federal government holds over 51% shareholding. The updated framework is expected to improve transparency and operational efficiency in the management of these enterprises.
The initiative to simplify merchant account procedures aligns with SBP’s broader strategy to modernize Pakistan’s financial ecosystem and enhance digital payment adoption. With over 220 million people and a growing smartphone penetration rate, the country holds significant potential for digital transformation.
The focus on reducing barriers for merchants and incentivizing digital platforms reflects a critical step toward achieving a cashless economy. By streamlining processes and fostering collaboration among stakeholders, the State Bank of Pakistan aims to pave the way for a more accessible and efficient financial system, benefiting businesses and consumers alike.
This move, coupled with legislative updates and a commitment to fostering digital innovation, underscores Pakistan’s vision of becoming a digitally empowered and financially inclusive economy by 2025.
