SBP Launches PRISM+: Major Overhaul of Pakistan’s Real-Time Digital Payments System

The State Bank of Pakistan (SBP) has announced the launch of PRISM+ (Pakistan Real-Time Interbank Settlement Mechanism Plus), set to go live on June 16, 2025. As part of its broader Vision 2028, the initiative marks a significant enhancement of the country’s national digital payments infrastructure.

PRISM+ aims to provide faster, more secure, and highly interoperable transaction settlements between banks and financial institutions. Built on the internationally recognized ISO 20022 messaging standard, PRISM+ is expected to dramatically improve the efficiency, transparency, and automation of financial operations across Pakistan’s banking ecosystem.

What is PRISM+?

The original PRISM system facilitated real-time gross settlement (RTGS) of high-value interbank transactions. With the introduction of PRISM+, SBP is not only upgrading the underlying architecture but also expanding its utility to support structured data, automated workflows, and interbank securities transactions.

“PRISM+ introduces critical innovations such as liquidity management tools, real-time dashboards, future payment scheduling, and improved settlement insights—all through a user-friendly web interface.

-SBP Official

Here are the key upgrades in PRISM+:

• Adoption of ISO 20022: Enhances interoperability with international financial systems and enables richer financial data exchange.

• Real-Time Monitoring: Customizable dashboards, alerts, and downloadable settlement statements.

• Liquidity Management: Enables proactive fund transfers between current and transitory accounts.

• Central Securities Depository (CSD): Facilitates government securities auctions, collateral management, and secondary market operations.

• Support for STP via APIs: Allows Straight-Through Processing using APIs or file adapters.

• Dual Messaging Support (MT & MX): Temporary compatibility with both old and new formats until September 30, 2025.

How PRISM+ Will Work

One of the most significant changes is the introduction of Transitory Accounts for settlement. At the beginning of each business day, 80% of a bank’s Current Account balance at SBP BSC (Karachi) will be moved automatically into its corresponding Transitory Account within PRISM+.

These accounts allow financial institutions to:

• Manage daily liquidity more flexibly.

• Allocate funds for auxiliary services such as Raast, NIFT, and 1Link.

• Monitor and approve transactions in real time.

To prevent systemic risks, SBP has urged all participants to maintain sufficient balances proactively and align their treasury functions accordingly.

Expectations and Industry Readiness

With the deadline just months away, SBP has directed all financial institutions to ensure full operational readiness for PRISM+ and review and revise internal frameworks and protocols. They should also retain and secure historical transaction data and complete integration with Raast OTC across all branches.

The system’s modular architecture and API-based access are expected to make PRISM+ scalable and future-proof, facilitating upcoming digital innovations in fintech, open banking, and AI-driven financial services.

Digital Payments Surge in Pakistan

However, the rollout of PRISM+ comes at a time when new federal budget proposals have introduced additional taxes on digital payments and e-commerce transactions. Industry leaders have warned that these fiscal measures, such as the 5% levy on payments to foreign vendors and tiered taxes on local online transactions, could discourage consumers and businesses from adopting digital channels.

While PRISM+ aims to enhance efficiency and transparency in the payment ecosystem, experts argue that the added cost burden and compliance complexity may slow down the transition from cash to digital payments. To maximize the benefits of PRISM+ and Pakistan’s broader digital financial infrastructure, stakeholders have urged the government to align taxation policy with its digitalization goals.