Raast Aims to Create Pakistan's Unified Digital Payments Infrastructure

by Riaz Haq

Jan 23, 2021

Pakistan's central bankers have taken the plunge into the world of digital payments with their own offering: Raast. It aims to create an instant low-cost payment system that can seamlessly and securely connect government entities, a variety of banks, including microfinance banks (MFBs),  electronic money institutions (EMIs) and State Bank authorized payment service providers (PSPs) like 1Link and NIFT which may choose to take advantage of it.  Currency and coins in circulation account for about 43% of Pakistan's total money supply. The introduction of Raast is part of the government's effort to modernize and document the nation's cash-based informal economy. Undocumented economy poses a serious threat to the country because it creates opportunities for criminal activities and tax evasion. Digital financial services will also promote e-commerce in Pakistan. 

Raast Digital Payment System. Source: State Bank of Pakistan

Raast Digital Payments:

Raast is a system of digital payment infrastructure. It is essentially a pipe that is intended to connect government and financial institutions with consumers and merchants with each other to process payments instantly at very low cost.  

Raast will be boosted by Pakistan government's decision to use it to pay salaries, pensions and pay welfare recipients under Benazir Income Support and Ehsaas Emergency Cash programs. 


It has been developed in-house by the State Bank of Pakistan  in collaboration with Karandaaz, Bill & Melinda Gates Foundation and supported by the World Bank, the British government and the United Nations.
Private Payment Apps:
Several private payment apps, including EasyPaisa and JazzCash, are already operating in Pakistan. These apps lack interoperability with each other. Each operates in its own silo. Neither of these offer links to financial institutions and government entities. 
There are also several EMIs (Electronic Money institutions) in Pakistan. These include NayaPay, SadaPay and Finja.  EMIs are not banks, but can store deposits. These are not tied to any banks or telcos. They could all use back-end plumbing offered by Raast. 
Payment Service Providers (PSPs) :
1Link and NIFT payment and switch networks, supported by different groups of Pakistani financial institutions, currently process the bulk of credit/debit card and ATM transactions as well as e-payments in Pakistan. State Bank's Raast promises to be cheaper and faster than these networks,. Raast also offers processing of e-payments by government entities. 
Raast Future Roadmap:

State Bank of Pakistan  intends to demonstrate Raast's usefulness by first processing government payments to individuals, including government employees and Ehsaas welfare beneficiaries, before expanding it for business applications.  SBP’s plan is to start person-to-person (P2P) payments using just the phone numbers in Q3/2021 and then bring merchants on board with QR codes by Q1/2022. 

Summary:
State Bank of Pakistan's launch of Raast digital payment infrastructure represents a great leap forward for the use of financial technology (FinTech) and financial inclusion in the  country.  It will also promote e-commerce in Pakistan. Undocumented economy poses a serious threat to the country because it creates opportunities for criminal activities and tax evasion.  Raast is part of the government's effort to modernize payment systems and document the nation's cash-based informal economy. 
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  • Riaz Haq

    Pakistan’s retail landscape has undergone a significant digital transformation, with nearly 90% of retail payments now processed through digital channels, according to the State Bank of Pakistan’s (SBP) latest Quarterly Payment Systems Review for Q3 FY25.

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    Digital payments surge as mobile apps and Raast drive growth in third quarter
    SBP reports 12% rise in retail transaction volumes and 22% growth in mobile-based payments

    https://profit.pakistantoday.com.pk/2025/06/25/digital-payments-sur...

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    The State Bank of Pakistan (SBP) has reported continued growth in the country’s digital payment landscape, with a 12% increase in retail transaction volumes and an 8% rise in value during the third quarter of FY25. According to SBP’s Quarterly Payment Systems Review, total retail transactions reached 2.4 billion, valued at PKR 164 trillion, with 89% conducted through digital channels.

    Mobile apps, including banking apps and e-wallets, processed 1.7 billion transactions worth PKR 27 trillion—up 16% in volume and 22% in value. Mobile banking app users rose 7% to 22.6 million, while e-money and branchless wallet users increased to 5.3 million (up 12%) and 68.5 million (up 6%) respectively.

    E-commerce transactions climbed 40% in volume to 213 million and 34% in value to PKR 258 billion, with digital wallets accounting for 94% of the total. In-store POS transactions reached 99 million, worth PKR 550 billion, processed by over 140,000 merchants. QR code payments also grew, with 21.7 million transactions totalling PKR 61 billion.

    SBP’s own platforms, Raast and RTGS, played a key role. Raast processed 371 million transactions worth PKR 8.5 trillion this quarter, bringing cumulative volume since launch to 1.5 billion and value to PKR 34 trillion. RTGS handled PKR 347 trillion in large-value payments across 1.5 million transactions.

    The central bank credited the growth to its digital finance strategy and collaborative efforts by banks, fintechs, and payment providers, reaffirming its commitment to financial inclusion and payment system efficiency.

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    State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Review for Q3 FY25,

    providing summary on the payment systems, and presenting notable changes in the digital

    payment landscape of the country.

    https://www.sbp.org.pk/psd/pdf/PS-Review-Q3FY25.pdf

    Jun 26, 2025

  • Riaz Haq

    Search Labs | AI Overview
    SBP to introduce digital cheque clearing, unified QR code ...
    In Pakistan, a unified QR code system for payments was introduced by the State Bank of Pakistan (SBP) in March 2022. This system aims to standardize QR code-based payments, enabling interoperability between different payment systems and facilitating seamless transactions. The goal is to promote low-cost digital payments, particularly at the retail level, and reduce the need for multiple QR codes at merchant locations. 
    Here's a more detailed explanation:
    • Interoperability:
      The unified QR code standard ensures that any QR code scanning device, including mobile phones, can scan any QR code issued under the standard, regardless of the issuing entity. 
    • Raast Integration:
      The system is designed to be channeled through SBP's Raast Instant Payment System, facilitating both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments. 
    • Compliance:
      All financial institutions offering digital payment services are required to comply with the new standard, ensuring their mobile apps can process payments from any QR code issued under the standard. 
    • Phased Implementation:
      The SBP mandated that all new QR codes be issued according to the new standard starting July 1, 2022, and that all QR reading/scanning systems be updated by June 30, 2022, according to the State Bank of Pakistan. 
    • Benefits:
      The unified QR code system aims to reduce costs, improve efficiency, and increase the adoption of digital payments in Pakistan. 

    Jul 16, 2025

  • Riaz Haq

    VEON Subsidiary JazzCash Reaches 1 Million QR-Enabled Merchants Across Pakistan

    VEON announced that its subsidiary JazzCash has onboarded its 1 millionth Raast QR-enabled merchant, marking a major milestone in Pakistan’s journey toward a cashless and digitally inclusive economy.

    Raast is Pakistan's national instant payment system – a digital payments infrastructure launched by the State Bank of Pakistan in 2021. Raast enables interoperability across Pakistan’s financial sector, empowering merchants by accelerating the use of digital payment tools such as QR codes to advance digital financial inclusion in the country.

    With one million Raast QR enabled merchants, JazzCash powers Pakistan’s largest digital payment acceptance network, digitizing everyday commerce across corner shops, micro-entrepreneurs, retailers and online businesses alike.

    Kaan Terzioglu, VEON CEO, and Aamir Ibrahim, JazzWorld CEO and JazzCash Chairman, onboarded Behbud Crafts today in Islamabad. The merchant is a retail outlet operated by Behbud Association, a pioneering non-profit organization dedicated to empowering women through vocational training, education, and sustainable livelihoods.

    JazzCash serves a registered customer base of 58 million and has processed more than PKR 15 trillion in transaction value in 2025 – roughly USD 53 billion, or the equivalent of 13% of Pakistan’s GDP. Through its growing network of merchants, QR payments, digital lending, and integration with Raast, JazzCash is helping formalize Pakistan’s economy while creating new opportunities for entrepreneurs, including women-led enterprises.

    15 hours ago