Raast, Pakistan’s first rapid payment system, has entered phase two.
Phase 2 commenced in January 2021. This is the second phase of the system, where users may transfer money using their Raast ID, which is their cellphone number.
According to SBP’s Abid Qamar, customers may generate Raast IDs by connecting their phone numbers to their accounts.
Senders may use this phone number instead of a bank account number to send money through Raast. Qamar says you don’t need to memorise your bank account number.
He argued memorising phone numbers was simpler and faster.
“Receiving clients may still use their standard IBAN,” he said.
Raast ID registration and payment through mobile applications or internet banking is now available.
Lastly, pay merchants (P2M).
Weak interoperability, difficulties accessing and expensive transaction costs are listed as factors for low electronic transactions in Pakistan.
It can only settle high-value corporate transactions. Retail payments will be faster, says the central bank.
Banks and experts alike welcome Raast. 1Link and NIFT are monitoring this platform.
In contrast to IBFTs, SBPs utilise their own system and switch.
Unbanked Pakistanis rely significantly on cash.
According to Khurram Mumtaz, Standard Chartered Bank Pakistan’s digital and data analytics head, the public is wary about digital banking/payments owing to concerns about security, dependability, and cash dependency.
Raast will soon be a payment gateway for individuals, companies, and organisations.
IBFT-based peer-to-peer payments are available. New payment system providers and governments may readily enter, Mumtaz said.
Digital payments are quicker and safer than cash payments if the public trusts the system.
SBC supports P2P through IBFT. His bank offers P2P payments through Internet and mobile banking, he claimed.
It is easy to use and provides real-time settlement. A single button press may transfer cash. The cost. Paid-to-pay transactions involve two parties. In fact, many systems now incorporate biometric security and provide transaction alerts automatically.
Acceptability of service will be difficult. Many individuals now utilise digital services, but the true gain is giving up cash. In order to educate the public, the baking business and government must collaborate.
It’s supposed to be API-connected, they explained. According to MENA Fintech Association Chair Nameer Khan, P2P systems may help increase financial inclusion rates throughout the nation. The atmosphere for digital financial service providers was improving, said Khan.
One of its best uses is P2P. A bold move and future SBP actions were lauded by the MENA Fintech Association Chairman.