Pakistan Switching to Digital Payments, A Way Forward to Cashless Economy!
As a matter of fact, more than 70% of Pakistan's population lies outside of the country's formal financial system, and the remaining small amount happens to have a bank account.
The way payments are received by businesses and how the consumers make payments would be transformed by switching to digital payments. Especially in Pakistan, digital currency and payment methods have the possibility to direct the country into an absolutely advanced era with a cashless economy.
A tea vendor in the country’s capital, Safeer Khan, who works at a leading telecommunication firm, was advised to switch to digital currency by his customers because they mostly didn’t carry change around. As a result, Safeer Khan finally adopted an e-wallet as well as got an account in a local company.
After he received all his pending payments, Easypaisa, a branchless banking service provider, found that his monthly income was more than enough to apply for a loan.
In order to run his shop more efficiently, Khan promptly applied for the loan so that he can buy the necessary goods as per the demands of his customers.
Safeer Khan, a 42-year-old man, currently resides in Rawalpindi and he is the sole breadwinner of a family of seven people. According to him, he earns around PKR 1200 on an everyday basis.
Getting access to credit is the biggest hurdle:
According to Khan, his biggest hurdle has been getting access to credit. He established his little business with all the savings he had while he was doing a daily-wage job. He often tried and approached various banks for the loan, but their terms and conditions left him confused. Furthermore, Safeer Khan was reluctant because of the consequences if he couldn’t pay the loan back in due time.
He then discovered the digital banking service, Easypaisa. He initially borrowed PKR 1000, and as he repaid the loan on time, he was permitted to take more loans. Isn’t he the best example of digital financial incorporation?!
As a matter of fact, more than 70% of Pakistan’s population lies outside of the country’s formal financial system, and the remaining small amount happens to have a bank account.
Although the digital payment system is still new in Pakistan, it is something with immense potential, and it can actually revolutionize the infrastructure of payments. For now, the State Bank of Pakistan has provided licenses to many digital payment companies in the country.
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