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Karandaaz Pakistan and the Better Than Cash Alliance have launched a national working group to accelerate merchant adoption of digital payments.
Karandaaz Pakistan and Better Than Cash Alliance, hosted by the United Nations Development Programme (UNDP), have launched a new initiative aimed at accelerating digital merchant payments and expanding financial inclusion across Pakistan.
The collaboration will be anchored by the National Merchant Payments Working Group, a multi-stakeholder platform established to promote wider acceptance of digital payments, particularly through Pakistan’s instant payment system, Raast.
While Pakistan has made significant progress in developing digital financial infrastructure, stakeholders note that merchant adoption remains uneven. The new initiative seeks to address this challenge by reducing onboarding barriers, resolving operational bottlenecks and improving access to digital payment solutions for small businesses and women-led enterprises.
Formed under the stewardship of the State Bank of Pakistan, the Working Group will function as an industry coordination platform bringing together banks, fintech companies, payment service providers, merchant acquirers, merchant associations and other ecosystem participants.
The platform will facilitate dialogue among stakeholders to identify market challenges, develop practical solutions and provide recommendations to support future policy and ecosystem development. It will also oversee time-bound pilot projects designed to improve merchant payment acceptance and accelerate digitisation across the country.
According to organisers, the initiative draws on successful merchant digitisation models implemented in other markets across Asia, Africa and Latin America. The partnership combines the Better Than Cash Alliance’s international expertise in digital financial inclusion with Karandaaz Pakistan’s local network of banks, fintechs, regulators and industry participants.
Commenting on the launch, Waqas ul Hasan, Chief Executive Officer of Karandaaz Pakistan, said that achieving a cashless economy requires greater digitisation of everyday business transactions and stronger collaboration between financial institutions, ecosystem players and small businesses.
Nshuti Mbabazi, Managing Director of the Better Than Cash Alliance, highlighted the role of responsible digital payments in improving transparency, efficiency and financial inclusion. She noted that while Pakistan’s merchant payments ecosystem has significant potential, broader adoption will require industry-wide cooperation to address affordability, sustainability and commercial viability challenges.
The Working Group will focus on developing sustainable merchant payment models, facilitating knowledge-sharing between local and international experts and supporting regulators with industry insights. Stakeholders believe the initiative can help expand digital commerce, increase formal financial participation and unlock new economic opportunities for businesses and consumers throughout Pakistan.
