SBP okays pilot operation of e-commerce gateway

Platform aims to capitalise on more than 80 million 3G/4G subscribers in Pakistan

The State Bank of Pakistan has granted approval to the pilot operation of an e-commerce payment gateway.

PayFast aims to capitalise on over 80 million 3G/4G subscribers in Pakistan citing massive potential of e-commerce in the country.

The approval comes on back of a boom in online payments in the midst of Covid-19 pandemic as customer’s preferences shifted from cash to cashless means.

Nevertheless cash still remains dominant in the economy with over 90% of online transactions being conducted on cash on delivery mode, the company said.

In a statement on Friday, CEO of the platform Syed Adnan Ali said digitalisation is an indispensable need of the society particularly after the Covid-19 pandemic.

Detailing about the platform, he said it aimed at providing intuitive, reliable and a high standard solution to consumers while also contributing to the economy.

He voiced hope that the platform will act as a catalyst to digitalise the economy and promote a cashless economy in Pakistan.

He added that company’s portfolio included 12 major banks of Pakistan.

However, the company added that it has low number of merchants primarily due to dearth of cost effective, robust and secure online payment solutions compatible with multiple modes of integration such as Open APIs, plugins etc.

Last year, the central bank began implementation of digital micro-payment infrastructure system which allowed transfer of funds in almost real time aimed at bringing a rapid surge in online payments in public and private sectors.

After outbreak of Covid-19 in Pakistan, a huge number of Pakistanis switched to internet and mobile banking and other payment platforms in a bid to adopt precautionary measures against the pandemic.

Published in The Express Tribune, July 18^th, 2020.

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