1
0
Karandaaz Pakistan and the Better Than Cash Alliance, hosted by the United Nations Development Programme (UNDP) are formally collaborating to accelerate digital merchant payments in Pakistan. The National Merchant Payments Working Group is being established to anchor this partnership, a multi-stakeholder platform designed to drive the growth of digital payments acceptance, particularly through the country’s inclusive instant payment system, Raast.
While Pakistan has registered significant advancements in its digital financial infrastructure, including the rollout of Raast P2M, merchant adoption remains uneven. This initiative specifically aims to bridge that gap by reducing onboarding friction, addressing operational bottlenecks, and advancing financial inclusion for women and small merchants.
Formed under the stewardship of the State Bank of Pakistan, the National Merchant Payments Working Group will serve as a neutral industry coordination platform for advancing merchant digitization in Pakistan. Drawing on successful models implemented across leading regional markets, the Working Group brings together banks, fintechs, payment service providers, merchant acquirers, merchant associations, and other key ecosystem stakeholders.
The Working Group will facilitate industry-wide dialogue to identify market barriers, co-create practical solutions, and generate actionable recommendations to support policy and ecosystem development. It will also design and execute time-bound proofs of concept to advance merchant acceptance across Pakistan. By facilitating closer collaboration between industry participants and policymakers, the Working Group aims to deliver a better-than-cash digital payments experience that unlocks new economic opportunities for businesses and consumers.
“To achieve a truly cashless Pakistan, we must move beyond person-to-person transfers and digitize everyday business transactions. This collaboration with the Better Than Cash Alliance will build a collective forum, bringing together key industry stakeholders, ecosystem players, and financial institutions, where small businesses can transition away from cash, unlocking new economic opportunities. A cashless economy is the future, it is now time for us to embrace it” — Waqas ul Hasan, CEO, Karandaaz Pakistan
The Better Than Cash Alliance brings extensive global expertise to this partnership with insights from in-country advisory services and implementation across Asia, Africa, and Latin America, as well as global advocacy leadership for financial inclusion within the G7 and G20. Karandaaz will complement this by bringing its deep domestic network spanning banks, fintechs, and regulators, as well as its extensive research and programmatic experience in small business digitization.
“Responsible digital payments are a proven catalyst for enabling transparency, efficiency, and scaling financial inclusion. Pakistan’s digital merchant payments ecosystem holds enormous, untapped potential, yet adoption at scale remains constrained by questions of affordability, sustainability, and the commercial viability of digital payments for value-chain suppliers and merchants across the economy. Closing this gap requires the entire ecosystem to move together: suppliers, merchants, and financial service providers aligned around shared incentives and practical solutions. The National Merchant Payments Working Group is the best space and platform for the ecosystem to collectively resolve what no single player can address alone.” — Nshuti Mbabazi, Managing Director, Better Than Cash Alliance
The Working Group will prioritize building consensus around sustainable merchant payment models, enabling structured knowledge exchanges between local and international experts, and consolidating industry perspectives to assist regulatory authorities in shaping future policies.
