This year, Meezan Bank will introduce Pakistan’s first Islamic e-commerce payment gateway and point-of-sale (PoS) system, with the goal of delivering a Sharia-compliant digital transaction system and solution to merchants and customers across the country.
To provide its customers with a Sharia-compliant cashless payment option through debit and credit cards, the bank is working to set up online payment solutions for e-commerce stores as well as PoS terminal installations, primarily at shopping centers, restaurants, and other retailers of goods and services.
According to Meezan Bank’s quarterly report, the bank is preparing to launch its merchant acquiring initiatives and e-commerce payment gateway in order to rapidly grow digital payments in Pakistan and meet the needs of the vast majority of retailers and online businesses looking for a Sharia-compliant solution.
Customers prefer to use the cashless payment option because to the Covid-19 pandemic, hence the use of payment cards has been on the rise in Pakistan for the past few years.
According to the State Bank of Pakistan (SBP), more than 3,000 e-commerce merchants are registered with various banks, while 72,000 point-of-sale devices were installed across the country by the end of the previous fiscal year.
In the financial year 2020-21, e-commerce transactions totaled Rs. 60 billion, with PoS-processed transactions totaling Rs. 453 billion.
Habib Bank Limited, United Bank Limited, MCB Bank, Easypaisa, JazzCash, Keenue, Fonepay, Payoneer, Payfast, and NIFTepay are some of Pakistan’s e-commerce and point-of-sale (POS) operators.
With the growing popularity of digital payment solutions, the introduction of Sharia-compliant alternatives will serve as a catalyst for the country’s payment system’s digitization, as faith-conscious merchants operating various e-commerce and retail outlets will prefer to use the alternative modes of the traditional banking system.
With the development of e-commerce and point-of-sale systems, merchants will be able to deposit funds directly into Islamic banks.
To read our blog on “Meezan Bank is the first bank in Pakistan to offer the SBP’s I-SAAF Small and Medium Enterprises Scheme (SMEs),” click here.
