State Bank Introduces Digital Wallet Solutions for Pakistani Freelancers
Exciting news for the Pakistani freelance community recently emerged as the State Bank introduced a new framework, allowing freelancers to open Exporters’ Special Foreign Currency Accounts to retain their earnings in dollars. Simultaneously, Sadapay made a significant impact by announcing their integration with Apple Pay and GPay, enabling freelancers to receive payments directly into their digital wallets. This development reinforces the idea that Pakistan’s tech-savvy population is increasingly shifting towards digital wallets for their financial services.
However, there are some dark clouds looming over the industry as well. In recent times, there has been a significant exodus of Electronic Money Institutions (EMIs). Surprisingly, at least half of the 12 entities that previously had some forms of approval are no longer in operation.
This wave of exits started with TAG, which had its license revoked due to fraud, and YAP, which quietly departed the country, reportedly due to financial troubles. More recently, Finja sold its EMI business to OPay, choosing to focus on lending instead. Meanwhile, Careem and Checkout withdrew their applications, and Zong’s PayMax has joined the list of departed EMIs.
Unlocking Cross-Border Payment Opportunities for Pakistani Freelancers
The challenging economic climate in Pakistan that resulted from currency depreciation, inflation, import costs, export challenges, and limited access to capital has a ripple effect on the ICT industry, impacting various aspects such as costs, consumer demand, access to resources, and market conditions.
The introduction of Exporters’ Special Foreign Currency Accounts and the integration with digital wallet platforms by Sadapay will offer Pakistani freelancers multiple advantages.
This integration streamlines the payment process, offering a more convenient and efficient way for freelancers to receive payments. Instead of grappling with complex and time-consuming payment procedures, freelancers can now accept payments directly into their digital wallets. This not only simplifies the payment process but also reduces the time required to access their hard-earned earnings.
Moreover, this integration reflects the increasing adoption of digital financial services within the Pakistani population. As more people turn to digital wallets, freelancers benefit from this trend, as it encourages them to embrace modern and efficient payment methods, making financial transactions more accessible and secure.
Additionally, this shift to digital wallets can lead to reduced transaction costs for freelancers. By receiving payments directly into their digital wallets, they may save on fees associated with traditional banking methods or currency conversion. This translates to freelancers retaining a higher portion of their earnings, which is particularly advantageous.
Furthermore, the use of digital wallets and modern financial services will enhance financial inclusion for freelancers. It grants them access to a broader range of financial services, simplifies fund management, and facilitates smoother transactions. This is especially valuable for freelancers who may not have had access to traditional banking services, improving their financial prospects.
Digital wallets will bring efficiency and speed to financial transactions. Freelancers can swiftly access their funds, which is particularly important for those who depend on timely payments for their livelihood. In summary, the integration of Sadapay with Apple Pay and GPay, coupled with the adoption of digital wallets, offers freelancers in Pakistan a range of benefits, from convenience and cost savings to enhanced security and financial inclusion.
Most importantly, digital wallets can now facilitate cross-border payments, opening new opportunities for freelancers. This segment has seen early growth and product development. Furthermore, 75% of their previous three months’ daily average outstanding balance was in government securities, increasing their float income. This development also provides an additional source of funding for the perpetually cash-strapped finance ministry.
ALSO READ: State Bank Report: Pakistan’s Digital Transactions Grow 57% Annually
PTA Taxes Portal
Find PTA Taxes on All Phones on a Single Page using the PhoneWorld PTA Taxes Portal
Explore NowFollow us on Google News!