SBP calls for Banks to accelerate adoption of PayPak Cards for providing low cost, efficient payment solutions

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KARACHI, Dec 07 (APP):The Deputy Governor of State Bank of Pakistan (SBP), Jameel Ahmad, has emphasized the need for the
adoption of domestic payment scheme, PayPak card by banks in
order to provide cost effective, ubiquitous and digital payment
instrument to consumers.
He was addressing senior banking and financial industry
executives at the event “PayPak- The Way Forward” held at State
Bank of Pakistan head office Karachi on Thursday.
Deputy Governor, SBP in his speech reflected on the
prevailing use of cash and financial exclusion in the country
that reduces the overall economic efficiency and hampers the
development of financial sector to its realizable potential.
Citing key infrastructural gaps in Pakistan for electronic
payments, he highlighted that SBP’s key strategic objective is to
build modern and robust Payment Systems in the country that
enables the provision of cost effective and easily available
Digital Financial Services (DFS) to the general public.
The Deputy Governor further talked about the importance of
domestic payment schemes in the development of key payments
infrastructure by incentivizing both consumers and merchants
while providing interoperability.
While highlighting full support of SBP to the adoption of
PayPak cards by all banks for issuing and acquiring, he
encouraged banks to devise strategies for increasing the uptake
of PayPak cards.
He advised banks to step up efforts for rationalizing the
cost of digital transactions by reviewing Merchant Discount Rate,
increasing access points, and ensuring the safety and security of
payment instruments to safeguard consumers’ money.
Syed Irfan Ali, Executive Director SBP, also talked about
the importance of collaboration and partnerships of banks with
non-bank such as Fintechs to provide efficient and affordable
payment solutions to consumers.
He advised all banks to comply with SBP’s guidelines of EMV
compliance to payment card security by stipulated timelines as no
exemption or relaxation will be allowed to any bank beyond June 30th.