Product Promotion Network

SBP projects positive outlook for growth of electronic, digital payments

The State Bank of Pakistan (SBP) has projected positive outlook for growth of electronic and digital payments and urged to capitalize the technological innovation to develop new products.

According to SBP’s Annual Performance Review, due to rapid technological progress, the global payment landscape is transforming very quickly and new payment methods coupled with ubiquitous technology and faster payment processing infrastructure are enabling both businesses and consumers to accept and make payments from the comfort of their homes and offices. Following the global trends, the payment systems’ landscape in Pakistan has also transformed rapidly during last 6-7 years with stellar growth in payment cards, mobile, internet banking transactions, etc. “This reflects growing acceptability and tendency of the market to absorb such innovative products and it’s a need of the hour to capitalize the technological innovation to develop products that suit the market needs and enhance customer facilitation”, it added.

The initiation of projects like development of National Payment Gateway, online collection of taxes & duties and elimination of cheques from government payments will have far reaching implications on banking system efficiency, effectiveness and access. Similarly, the initiation of domestic payment schemes would give flip to SBP efforts to promote e-payments in the country, SBP said. Notwithstanding, the highly positive outlook for growth of electronic and digital payments, the cash is going to stay in the foreseeable future.

The SBP thus along with the promotion of electronic and digital payments would also ensure adequate availability of good quality banknotes across the country. According to SBP, the implementation of currency management strategy across the country in 2018 will totally transform and automate the cash management function making it efficient and cost effective besides enhancing the system’s ability to ensure the integrity of its banknotes. SBP has been playing a leading role in development of National Payment Systems’ architecture and infrastructure as the Regulator, Operator and Facilitator.

Development of a modern and robust payment system is an important strategic goal of SBP Vision 2020.

Under this goal, SBP is developing the National Payment System strategy, modernizing the clearing and settlement infrastructure for reducing cost, improving efficiency, enhancing security, and strengthening its regulatory and supervisory oversight.

Copyright Business Recorder, 2017

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