Scams, overcharging hamper e-transactions

Experts say e-commerce, quick commerce, and fintech are driving growth but require monitoring to curb fraud

KARACHI:

To promote digital prosperity and the economy, key pillars of the local digital landscape—such as e-commerce, quick commerce, e-delivery services, and fintech—are playing a vital role in making businesses and e-transactions convenient, user-friendly, and fast for both novice and expert users. However, these platforms require strict monitoring to eliminate phishing and other malpractices and address existing challenges.

These sectors include quick commerce and e-commerce, self-service banking solutions, and currency technology solutions. Additionally, financial inclusivity is being enhanced through cutting-edge payment solutions. Apart from tech, software, and IT companies that act as enablers, web and app development firms specialise in assisting startups at all stages.

Fostering the digital economy is essential to eliminating scams and malpractices. Residents of major cities like Karachi, Hyderabad, Faisalabad, Lahore, and Multan increasingly rely on e-commerce to save time and transportation costs. However, many riders from popular online marketplaces overcharge customers upon home delivery. Additionally, they often work irregular hours, including late nights, instead of the standard business hours of 9 AM to 5 PM. Popular e-store management must take action against dishonest and tardy riders to support the growth of e-transactions.

A fundamental component of the economy is transactions—economic growth depends on their frequency.

Quick commerce, in particular, is gaining popularity, as its riders ensure timely delivery without overcharging customers. However, running a quick commerce platform in Pakistan comes with challenges, including inconsistent internet connectivity and maintaining reliable stock availability from suppliers.

Hassan Arshad, Director of Policy & Communications at foodpanda Pakistan, said, "To address these hurdles, we have implemented a robust vendor selection process, proactive logistics monitoring, and data-driven stock planning and management. During internet disruptions, we provide strong support to our riders by offering WiFi access at pandamarts, rider hubs, and offices, enabling them to handle orders efficiently and reduce any potential impact on their earnings."

He added, "We remain dedicated to ensuring our platform meets the evolving needs of our customers, including during Eidul Fitr. During Ramazan, we have seen a consistent increase in grocery orders through pandamart and foodpanda shops. This highlights a strong dependence on our platform for essential household items and food supplies throughout the holy month. Customer numbers have steadily grown during this time, and the demand for items such as dates, beverages, cooking essentials, and ready-to-eat meals has surged significantly. We expect this trend to continue and are optimising our resources to ensure platform efficiency is sustained during Ramazan."

Discussing the role of cloud kitchens, he noted that foodpanda's strategically distributed cloud kitchen network across key urban centres provides a dynamic platform for culinary innovation. By offering shared, delivery-centric kitchen spaces, foodpanda significantly reduces overhead costs compared to traditional restaurant setups, allowing restaurants to operate multiple concepts from a single location. This model supports market expansion with minimal investment while enhancing operational efficiency through shared resources and optimised workflows. Additionally, dark stores in major cities improve the ability to meet diverse localised customer demands efficiently, providing both convenience and reliability.

Speaking about fintech and its challenges, IT professional and Hexalyze Consulting Services CEO Saad Shah highlighted that digital solutions from banks and fintech firms are emerging with innovation and greater accessibility. However, scams and fraudulent activities remain significant challenges for service providers and customers alike.

He stressed that service providers must strengthen cybersecurity measures against cybercrime and raise customer awareness to protect them from scams, phishing, and fraudulent activities.

He also advised that fintech firms and banks should upgrade their software and relevant systems before they become outdated. At the same time, customers should frequently change their credentials—such as IDs and passwords—to safeguard themselves from financial losses and avoid sharing these details with anyone, whether known or unknown.