The State Bank of Pakistan (SBP) has instructed banks and financial institutions to integrate the RAAST payment system into e-commerce platforms and online shopping stores by March 31, 2025. This move aims to accelerate the digitization of merchant and business transactions across the country.
Under the directive, banks will enable RAAST P2M (Person-to-Merchant) digital payment acceptance services for businesses already connected to the banking system. The SBP circular stated, “All regulated entities (REs) shall ensure that their existing account-holders providing in-store and/or online shopping services are enabled with RAAST P2M digital payment acceptance services by the deadline.”
Onboarding New Merchants
The SBP has also mandated that all new merchants and businesses onboarded by banks must be enabled with the RAAST P2M service as part of the onboarding process. Banks and financial institutions can either integrate directly with RAAST P2M or partner with SBP-regulated entities such as Electronic Money Institutions (EMIs), Payment System Operators (PSOs), or Payment Service Providers (PSPs) to provide these services.
Features of RAAST P2M
The RAAST P2M service, launched as part of the SBP’s broader digitization initiative, will allow businesses to accept payments through various methods, including:
- Quick Response (QR) Codes
- RAAST Alias
- IBAN (International Bank Account Number)
- Request to Pay (RTP)
Banks have been directed to ensure that their delivery channels, such as mobile apps, internet banking portals, and USSD channels, are equipped to process P2M transactions.
Boosting Digital Payments
The SBP’s initiative is expected to significantly enhance the adoption of digital payments in Pakistan’s e-commerce and retail sectors. By enabling seamless and interoperable payment solutions, the RAAST P2M service will provide businesses and consumers with a secure and efficient payment system, reducing reliance on cash transactions.
This directive is part of the SBP’s ongoing efforts to modernize Pakistan’s payment infrastructure and promote financial inclusion through digital transformation.
