State Bank of Pakistan Introduces QR Code Payments for Eid al-Adha Livestock Purchases

The State Bank of Pakistan plans to implement a QR code system during Eid al-Adha for the Raast instant payment service, facilitating the purchase of sacrificial animals.

During the “Mobile Commerce 2024” conference, Ahmed Sameer, Deputy Director of the State Bank, announced that the QR code system would likely be introduced for the upcoming Eid.

Sameer noted:

We are collaborating with 25 banks and have chosen 50 key livestock markets to support the QR code payment system, making transactions easier for the public.

He emphasized the project’s significance for livestock breeders and sellers.

In related news, authorities have offered a discount on fees for sacrificial animals for Eid-ul-Adha.

Sameer further explained that the initiative aims to enable secure transactions for people and traders purchasing sacrificial animals, potentially facilitating digital transactions worth 550 to 600 billion rupees during this religious festival.

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The Deputy Director also pointed out that adopting QR codes for payments will revolutionize the payment process, as the high costs of installing point-of-sale (POS) machines are a known challenge.

The QR payment system also benefits small-scale traders by allowing them to accept online payments, reducing the economy’s dependence on cash. These traders can now easily implement QR codes for instant online transactions.

The QR code system will be rolled out in 15 cities, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad, where State Bank offices are located.

Yahya Khan, Chief Digital Banking Officer at Bank Alfalah Limited, highlighted that approximately 8 to 10 trillion rupees in cash circulate in Pakistan, representing a significant proportion relative to GDP.

In a related development, Pakistan’s Finance Minister, Muhammad Aurangzeb, suggested discontinuing the 5000 rupee note.

Additionally, Mohammad Humayun Sajjad, CEO of Mashreq Bank, mentioned that the lower operational costs of digital banks, fewer physical branches, and the push towards digital banking would allow them to offer higher profit margins to depositors for mobile financing.