In recent years, Pakistan has seen a significant rise in financial technology, commonly known as fintech. This growth has come at a time when the country is striving to improve financial inclusion, make banking more accessible, and offer better services to both individuals and businesses. Pakistan, with a population of over 240 million people, has faced challenges related to limited access to banking, especially in rural areas. However, with the rapid spread of mobile phones, the internet, and digital infrastructure, fintech is gradually bridging the gap between people and financial services.

One of the key reasons for this progress is the increasing use of smartphones and mobile internet. As more people, particularly the youth, gain access to digital devices, the demand for convenient financial solutions has grown. Traditional banking, with its lengthy procedures, limited working hours, and physical branches, does not meet the needs of the modern Pakistani user. Fintech, in contrast, offers speed, simplicity, and accessibility. With just a mobile app, a person can now send or receive money, pay bills, top up mobile credit, invest, or apply for a loan — all without visiting a bank.

The journey of fintech in Pakistan began with the rise of mobile wallets. In the early 2010s, products like Easypaisa and JazzCash were introduced. These platforms enabled users — particularly those without bank accounts — to save money, make payments, and carry out basic financial transactions via their mobile phones. Initially, these services were targeted at the unbanked population and made available at small retail shops. Over time, however, these services evolved into fully digital wallets offering a wide range of features, including QR payments, insurance, ticket booking, and more.

Government support has played a constructive role in encouraging fintech growth. The State Bank of Pakistan (SBP) has launched several initiatives aimed at increasing digital payments and financial inclusion. One such initiative is the Raast system — Pakistan’s first instant payment system. Raast enables free and fast digital transactions between individuals, businesses, and government entities. It reduces reliance on cash and encourages the public to adopt digital payment methods. Launched in phases, Raast is now widely used for person-to-person transfers and government-to-person payments, such as the disbursement of welfare funds.

Pakistan’s Fintech Revolution: Driving Financial Inclusion And Economic Growth ........

© The Friday Times