According to the Pakistan Telecommunication Authority (PTA), bulk payments, such as government to person (G2P) and business to person (B2P), should be made using mobile wallet accounts/digital accounts, in line with worldwide standards.
Payments using such accounts, according to the PTA, must be accepted and as convenient as cash purchases at merchant outlets.
To reap the greatest benefit, the Digital Financial System (DFS) and e-commerce ecosystem must evolve to a point where consumers and businesses are comfortable leaving their funds in digital form rather than cash, and prefer to make transaction payments via electronic means rather than cash or cash on delivery (COD).
Consumers should be able to transmit funds/payments to any intended recipient over any legal channel since payments across diverse channels should be ubiquitous and interoperable.
Digital wallets should be able to provide additional services such as savings, insurance, investing, and loaning. According to the PTA, the key to success is to build customer trust in digital technologies by providing necessary incentives and enabling platforms.
The telecom infrastructure provides an authenticated base for digital/ remote onboarding and supply of digital services, with 188 million biometrically confirmed SIMs and 107 million mobile broadband subscribers.
Due to increased digitalization in practically every public and private sector in Pakistan, the e-commerce market has seen tremendous growth in recent years.
According to the SBP, the e-commerce market in 2020 will have grown by 55.5 percent from the previous year to Rs. 235 billion. In 2020, the number of e-commerce merchants registered with banks is expected to rise by 45.76 percent.
According to the Ministry of Commerce, the size of Pakistan’s e-commerce market increased by more than 35% in the first quarter of fiscal year 2021.
To read our blog on “All CNICs will be converted to digital wallets by NADRA soon,” click here.