Do you know how will digital payments mechanism work at cattle markets?
In a significant move to enhance financial security and inclusion, the State Bank of Pakistan (SBP) is rolling out a QR code payment system across cattle markets nationwide ahead of Eid ul Adha.
This initiative, aimed at curbing cash transactions and fostering financial inclusion, targets an industry valued at approximately Rs550-600 billion during the festive season.
How will digital payments mechanism work at cattle markets?
The SBP has collaborated with 25 banks to facilitate QR code payments at 50 major cattle markets, expanding the use of the Raast Instant Payment System.
The central bank’s statement highlighted that this initiative would not only ensure secure transactions for both buyers and sellers but also provide banks with the opportunity to tap into the substantial economic activity associated with the festival.
Ahmed Sumair, joint director of SBP’s Payment System Policy and Oversight Department, elaborated on the project during the 17th international conference ‘Mobile Commerce 2024’.
“We are working with 25 banks and have selected 50 major cattle markets to implement the QR code payment method,” Sumair stated.
He noted that markets in all 15 cities with SBP field offices, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad, have been earmarked for this initiative.
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In Karachi alone, six cattle markets will be equipped with QR code payment systems. Sumair emphasized the project’s goal to alleviate the burden of carrying large sums of cash for cattle purchases, thereby enhancing payment security and convenience.
“Furthermore,” Sumair added, “this initiative will bring cattle farmers into the digital payment ecosystem, promoting broader financial inclusion through Raast.”
He highlighted that the high costs associated with installing traditional POS machines have limited their adoption, whereas QR code payments provide a more accessible solution for small merchants.
Merchants will now be able to display QR codes to receive real-time payments easily, reducing reliance on cash transactions.
This effort aligns with SBP’s strategic objective of reducing the high volume of currency in circulation by establishing digital acceptance points across the country.
The QR code payment system is poised to revolutionize the transaction experience in cattle markets, providing a seamless, secure, and efficient alternative to cash, thereby contributing to the broader goal of a digitally inclusive economy.
