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Sunday, May 26, 2024

State Bank Introduces QR Codes for Eid Animal Purchases

It's anticipated that the State Bank of Pakistan will implement a QR code system within the Raast instant payment service for buying sacrificial animals for Eid al-Adha.

During the “Mobile Commerce 2024” conference, Ahmed Sameer, Deputy Director at the State Bank, indicated that the QR system is poised for introduction this Eid. Sameer mentioned ongoing collaboration with 25 banks and the selection of 50 key livestock markets to enable QR code-based payment systems, making transactions easier for the public. He emphasized the significance of this initiative for both livestock breeders and sellers.

He further stated that this initiative aims to facilitate secure transactions for individuals and traders when buying sacrificial animals. Moreover, it supports banks in potentially managing livestock purchases valued at 550 to 600 billion rupees through digital banking during this yearly religious event.

The Deputy Director asserted that implementing QR codes for payments will notably transform the payment process, considering the difficulties associated with installing point-of-sale (POS) machines.

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The QR payment system has also empowered small-scale traders to accept online payments, decreasing dependence on cash in the economy. Traders can now conveniently install QR codes to swiftly receive online payments.

The QR code system will go live in 15 cities, encompassing Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad, where State Bank offices operate.

Yahya Khan, Chief Digital Banking Officer of the Digital Banking Group at Bank Al Falah Limited, highlighted that approximately 8 to 10 trillion rupees in cash circulate in Pakistan, representing a substantial ratio compared to GDP and cash.

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In the meantime, Pakistan’s Finance Minister, Muhammad Aurangzeb, proposed phasing out the 5000 rupee note.

Mohammad Humayun Sajjad, CEO of Mashreq Bank, emphasized that by minimizing operational expenses, decreasing the number of physical branches, and encouraging digital banking, digital banks could provide greater profit margins to depositors for mobile financing.