Pakistan to Launch National Digital Payment Index

Pakistan is on the verge of launching a Digital Payment Index (DPI) at a national level. The basic goal is to track and assess Pakistan’s progress in payment digitization. This initiative aligns with Pakistan’s digital transformation agenda, offering a comprehensive framework to measure digital payment adoption across different sectors, regions, and demographics. The index has been developed in collaboration with Karandaaz Pakistan and the State Bank of Pakistan (SBP). It seems instrumental in understanding the effectiveness and penetration of digital payment infrastructure within Pakistan.

Why Pakistan Needs a Digital Payment Index?

Global economies are increasingly shifting towards digital payments, so, Pakistan must strengthen its digital payment ecosystem. A national DPI will measure the adoption of digital payments. Moreover, it will also highlight areas needing advancement. DPI will offer required data to policymakers, financial institutions, and private-sector stakeholders for guiding investments and making informed decisions. It will help in fostering a more inclusive financial ecosystem.

Key Objectives of Pakistan’s DPI

The DPI will serve several important purposes, including:

• Tracking Adoption and Usage: The index will provide data on digital payment trends across different channels, such as card usage, mobile payments, and QR code adoption, allowing stakeholders to gauge progress.
• Accentuating Infrastructure Gaps: By determining gaps in payment infrastructure, the DPI will help direct investments toward improving payment solutions in underserved areas.
• Informed Policy Interventions: A well-constructed index will support data-driven policy decisions, allowing the SBP and other regulatory bodies to enforce targeted interventions.
• Consumer Insights: Apprehending consumer preferences, convenience, and concerns regarding digital payments will be an important focus, ensuring that the infrastructure is user-friendly and secure.

Benchmarking Pakistan Against Global Standards

Pakistan’s DPI will allow the country to benchmark its progress against other nations. Countries like Hungary, Austria, and Romania have already developed similar indices. For instance, the Mastercard Digital Payment Index to measure their payment digitization efforts. Pakistan’s DPI will integrate key indicators like account penetration, POS adoption, and instant payment enablement to provide a structured, standardized measurement of digital payment growth.

The launch of Pakistan’s Digital Payment Index is a noteworthy step in accelerating Pakistan’s journey toward a cashless economy. By occasionally updating the index and using it as a benchmark, the government and financial institutions can guarantee that Pakistan remains on track to meet its digital transformation goals, facilitating a robust and efficient digital payment ecosystem.

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