‘Pakistan should replicate Egyptian model to spur digital payments’

As digital payments became an increasing phenomenon across the world, Pakistan can also move towards a cashless economy by replicating the Egypt’s digitalisation model, keeping in view many similarities between the two countries on economic fronts.

It was the crux of discussions held with the country manager of Paymob Pakistan Fawad Abdul Kader. He threw light on different aspects of digitalising the merchandise in Pakistan on the pattern of the Egyptian model whereby the phenomenon was increasing at a supersonic speed.

Kader said he had recently visited Egypt to learn their techniques for promoting digital transactions as within a few years it got connected with 7,50,000 merchandise within a period of few years.

“We want to connect 100,000 merchandises with digital payment solutions in a short to medium term goal, against the existing 900 connected through our system,” he said.

However, in Pakistan, the adoption of digital payments has been slow, despite the growing numbers of financial inclusion, particularly in digital payments acceptance.

The slow adoption of digital payments, he continued, remained a challenge due to the behavior of people who still prefer cash transactions. “This slow adoption in some cases is also attributed to a lack of awareness and willingness among small businesses and merchants to conduct all transactions in cash to avoid documentation and taxes.”

A lack of awareness and willingness among small businesses to conduct transactions digitally remains the biggest challenge faced by Paymob in the country, according to Kader.