State Bank Introduces QR Code Payments for Eid al-Adha

The State Bank of Pakistan (SBP) is planning to introduce a QR code payment system under its Raast instant payment service for buying sacrificial animals during Eid al-Adha. This announcement was made at the 17th “Mobile Commerce 2024” conference by SBP’s Deputy Director, Ahmed Sameer.

How It Will Work

The QR code system is expected to be launched by this Eid. SBP is collaborating with 25 banks and has chosen 50 major livestock markets to enable this payment method. This will make it easier for people to buy sacrificial animals using QR codes, providing a safe and secure way to pay.

Benefits for Livestock Breeders and Sellers

This new system is especially important for livestock breeders and sellers. It will help them and the buyers make secure transactions. The initiative also aims to support banks in managing livestock purchases worth between 550 and 600 billion rupees through digital payments during Eid.

Advantages of QR Code Payments

Using QR codes for payments will simplify the process and reduce the need for expensive point-of-sale (POS) machines. Small traders can also benefit by accepting online payments through QR codes, reducing their reliance on cash. This system will be activated in 15 cities, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad, where SBP offices are located.

Current Cash Circulation and Digital Banking

Yahya Khan, Chief Digital Banking Officer at Bank Alfalah Limited, mentioned that there is a large amount of cash, around 8 to 10 trillion rupees, circulating in Pakistan, which is high compared to the country’s GDP. To address this, Pakistan’s Finance Minister, Muhammad Aurangzeb, has suggested discontinuing the 5000 rupee note.

Future of Digital Banking

Mohammad Humayun Sajjad, CEO of Mashreq Bank, stated that digital banks have lower operating costs and fewer physical branches. Promoting digital banking can help offer higher profit margins to depositors through mobile financing.

This new QR code payment system by the SBP aims to make transactions easier and more secure, benefiting both buyers and sellers during the festive season.

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