Karachi: Meezan Bank is intensifying its digital payments strategy by expanding its merchant network and increasing the adoption of instant payment solutions. This move aligns with Pakistan's broader transition toward a cashless economy, a senior bank official stated.
According to Meezan Bank Limited, digital transactions are experiencing a significant increase across Pakistan. Data from the State Bank of Pakistan indicates that approximately 92% of retail transactions now occur through digital channels, illustrating a marked shift away from cash-based systems. In this changing financial environment, Meezan Bank has positioned itself as a significant player in merchant acquiring and digital payment facilitation.
The bank's merchant network has surpassed 50,000, with average monthly transaction volumes reaching about Rs50 billion, based on industry estimates. Ahmed Ali Siddiqui, Group Head of Consumer Finance and Digital Banking at Meezan Bank, emphasized that the shift towards digital payments is a crucial economic development. "The digital transformation of Pakistan's financial landscape presents a significant opportunity to improve transparency, strengthen documentation and support inclusive economic growth," Siddiqui explained. He added that enabling merchants to accept digital payments facilitates the transition of businesses from informal cash-based operations into the formal economy.
Pakistan's economy faces challenges related to its cash dependency, including a low tax-to-GDP ratio of around 9-10% and limited formal financing access for SMEs. These businesses contribute nearly 40% to GDP but receive less than 10% of bank credit. Industry experts suggest that digital payments can address these gaps by enhancing financial records, improving tax collection, and reducing transaction inefficiencies. Cash handling costs are estimated to range between 0.5% and 1.5% of GDP, with cash-on-delivery still dominating e-commerce transactions.
Meezan Bank is actively expanding its digital acquiring infrastructure, including point-of-sale terminals, QR-based payments, and e-commerce solutions. The bank is integrating with Raast, Pakistan's instant payment system, to facilitate faster, low-cost, and secure transactions for merchants and consumers. As part of its strategic growth, Meezan Bank aims to onboard over 140,000 additional merchants and expand Raast acceptance across more than 40,000 POS terminals. New features such as instant QR code generation and soundbox devices that provide real-time transaction alerts are being introduced to boost merchant confidence in digital payments.
Market data shows strong growth in Raast-based merchant payments, with transaction volumes increasing at an average monthly rate of approximately 40%, indicating growing acceptance among small retailers and micro-businesses. Siddiqui stressed that ongoing investment in infrastructure and innovation is essential for sustaining this growth. "Our focus is on building a robust digital ecosystem that is accessible, secure and aligned with Shariah principles," he noted, highlighting the dual benefits of strengthening the bank's market position and contributing to Pakistan's goal of a documented, cashless economy.
Analysts suggest that as banks enhance digital payment capabilities and onboard more merchants, Pakistan could see accelerated progress toward financial inclusion and economic formalization, especially among underserved groups. With transaction volumes on the rise and institutional support strengthening, the country's digital payments ecosystem seems poised for continued expansion in the coming years.
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