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The State Bank of Pakistan (SBP) has launched the Real-Time Interbank Settlement Mechanism Plus (PRISM+), a next-generation payment system aimed at modernising the country’s financial infrastructure. By adopting the ISO 20022 international messaging standard, Pakistan has joined a select group of nations that use this globally recognised protocol for both high-value transactions and retail payments. The new system brings several advanced features, including real-time liquidity management, transaction prioritisation, and the ability to pre-schedule payments. PRISM+ is also fully integrated with the Central Securities Depository, enabling broader financial market functions and enhancing operational efficiency. At the system’s inauguration, held at the National Institute of Banking and Finance (NIBAF) in Karachi, SBP Governor Jameel Ahmad highlighted PRISM+ as a milestone in strengthening Pakistan’s payments landscape. “With PRISM+, we are enhancing both capacity and efficiency to meet the growing needs of the financial market,” he said. The governor credited the World Bank Group’s support under the Financial Inclusion and Infrastructure Project, along with the contributions of SBP’s team, commercial banks, and technology partners, for making PRISM+ a reality. He noted that the original PRISM had already processed transactions exceeding ten times the country’s GDP in the last fiscal year, underlining the critical role of such systems in Pakistan’s economy. Governor Ahmad also emphasised the SBP’s commitment to ensuring cybersecurity, anti-money laundering (AML) compliance, and fraud management controls, reinforcing trust in the financial system. Sharing the scale of Pakistan’s digital financial ecosystem, he stated that the country now hosts over 225 million bank and digital wallet accounts, including 96 million unique users, 28 million mobile banking app users, 71 million branchless banking users, and 17 million internet banking users.

Across Asia, QR code-based payments are transforming the way small and large businesses accept money. Driven by national P2M (Person-to-Merchant) QR standards, countries are enabling millions of merchants—especially in retail and micro-enterprises—to go digital without costly POS devices. From China and India’s massive networks to Indonesia’s 38 million QRIS merchants, the region is setting the pace for financial inclusion through low-cost, interoperable payment systems. Now, Pakistan has emerged as a fast mover, onboarding over 770,000 merchants under its Raast P2M QR system within just three years. This article highlights the latest adoption figures and trends across eight leading Asian economies that are reshaping the cashless commerce landscape. China leads globally with hundreds of millions of merchants—ranging from street vendors to large retailers—accepting QR payments via Alipay and WeChat Pay. Over 95% of mobile users routinely scan QR codes for in-person purchases. India’s Unified Payments Interface (UPI) ecosystem, including the BharatQR standard, supports tens of millions of merchants, spanning both online and offline channels. Billions of QR‑based transactions are processed daily. Bank Indonesia’s QRIS unified standard (launched August 2019) reached approximately 38.1 million merchants by early 2025 . 56.3 million users, handling 2.6 billion transactions worth Rp 262.1 trillion in Q1 2025. QRIS Tap (NFC-based) enabled 1.4 million merchants as of launch . The Philippines’ national EMV‑based QR standard (QR PH) onboarded around 473,000 merchant locations by April 2022, with fast growth through BSP’s InstaPay and bank adoption. Thailand’s PromptPay (with ThaiQR merchant‑scan capability) launched in 2017. As of 2019, it had around 43 million user subscribers; merchant and POS network continues to grow, primarily through widespread smartphone adoption. The VietQR standard (2021 launch) is still scaling across banks and e‑wallets. While specific merchant counts for 2025 aren’t published, widespread wallet interoperability and ASEAN linkage indicate rapidly expanding acceptance, especially in urban and tourist zones with almost Over 650,000 Acceptance Points Launched in March 2019. As of 2024, over 350,000 merchant points accept LankaQR, including UPI‑linked merchants targeting Indian tourists Launched by the State Bank of Pakistan in March 2022, integrated into Raast. As of Q3 FY25 (~April–June 2025): 770,000 merchants onboarded for P2M QR code acceptance. 1.5 million QR‑based transactions processed in that quarter—PKR 4.5 billion in value. These merchants are part of Pakistan’s broader digital payment momentum: in Q3 FY25, 89% of retail payments (volume) moved through digital channels (~1.686 billion transactions), including PKR 27 trillion in value via mobile/QR wallets. QR‑based merchant payments alone accounted for 21.7 million transactions worth PKR 61 billion in Q3 FY25 Summary of Merchant Onboarding Country QR P2M System Merchant Count (most recent) China Alipay / WeChat QR Hundreds of millionsIndia UPI + BharatQR Tens of millionsIndonesia QRIS 38.1 million merchants (2025)Philippines QR PH 473,000 merchants and expandingThailand ThaiQR / PromptPay Tens of millions estimatedVietnam VietQR Over 650,000 Acceptance PointsSri Lanka LankaQR 350,000 merchant points (2024)Pakistan Raast P2M QR 770,000 merchants (Q3 FY25) Analysis & Key Insights Growth & Scale Indonesia leads regional merchant deployment with over 38 million onboarded. China and India, with their massive user ecosystems, host far larger merchant networks. Pakistan is catching up fast—starting QR payments in 2022 and already hitting 770,000 merchants by mid‑2025. Gaps & Potential Pakistan’s QR merchant penetration remains modest relative to MSME base (~5 million retailers), suggesting scope for further device and agent-led onboarding. In contrast, Indonesia and Thailand have normalized QR acceptance even among street vendors and micro‑merchants. Interoperability Outlook ASEAN cross-border QR linkage is live for QRIS, ThaiQR, VietQR, and QR PH, enhancing frictionless payment for tourists and merchants . Pakistan may explore cross-border QR use via integration with international wallets or remittance-linked QR systems in future policy phases. In a landscape Indonesia leads in merchant penetration (~38 M), followed by India and China at massive scale. Pakistan, though newer, is rapidly scaling: 770,000 merchants onboarded and playing a growing role in national digital retail infrastructure.

Overview:Pakistan witnessed a significant surge in remittance inflows during May 2025, with the total reaching $3.7 billion, according to data released by the State Bank of Pakistan (SBP). This marks a 16% month-on-month (MoM) increase from April 2025 and a 13.7% year-on-year (YoY) rise compared to May 2024. Cumulative Growth:Over the first 11 months of FY25 (July to May), cumulative remittances stood at $34.9 billion, reflecting a 28.8% increase from the $27.1 billion received during the same period in FY24. This sharp rise underscores the growing reliance on overseas inflows to stabilize Pakistan’s external account and support household consumption in a challenging economic environment. Economic Implications:Remittances continue to play a pivotal role in Pakistan’s macroeconomic stability, serving as a vital non-debt-creating source of foreign exchange. These inflows support the current account balance, boost foreign reserves, and provide critical disposable income to millions of households across the country. In April 2025, SBP Governor Jameel Ahmad emphasized that the strength in remittances would contribute to a substantial current account surplus, calling it the best performance of Pakistan’s external sector in the past two decades. Country-wise Breakdown: Key Sources of Growth 1. Saudi Arabia: 2. United Arab Emirates (UAE): 3. United Kingdom: 4. United States: Conclusion: The remittance trend in FY25 signals resilient external sector performance, supported by strong diaspora contributions, particularly from the Gulf and Western countries. If this momentum continues, remittances are likely to surpass expectations and serve as a critical buffer against Pakistan’s balance of payments pressures. Policymakers may leverage this trend to strengthen the rupee, reduce external borrowing, and enhance financial inclusion of remittance-receiving households.

On June 27, 2025, Pakistan’s Finance Division informed the Economic Coordination Committee (ECC) that the government is considering scaling back certain incentives designed to boost remittance inflows, due to soaring costs associated with the schemes. Currently, five major remittance incentive programs are being implemented by the State Bank of Pakistan (SBP) and the Pakistan Remittance Initiative (PRI), with the TT Charges Scheme being the flagship initiative. This scheme provides a “zero-cost” model for both senders and recipients of remittances, aimed at encouraging the use of formal banking channels. What the Current TT Charges Scheme Offers Under the version approved in August 2024, the scheme reimburses SAR 20 (Saudi Riyals) for every remittance transaction of $100 or more. Additional incentives include: Surging Remittance Inflows, Soaring Costs According to SBP, remittances from July 2024 to May 2025 reached $34.9 billion — a 28.8% increase ($7.8 billion) from the same period last year. Based on this momentum, total inflows are expected to hit a record $38 billion by the end of June 2025. But with this growth comes a fiscal challenge. The remittance incentive schemes cost the government over Rs 200 billion in FY 2025 — approximately Rs 50 billion per quarter. The TT Charges Scheme alone accounted for Rs 170 billion, or 85% of the total cost. SBP’s Proposal: Targeted Reforms, Cost Savings To manage this financial burden, the SBP has proposed a set of changes starting July 1, 2025: SBP estimates these changes will cut the incentive-related costs to Rs 88 billion in FY 2026 — a reduction of over 57% from the previous year. Caution on Sudden Changes Despite the urgency to reduce costs, ECC members emphasized the need for a proper transition strategy. They acknowledged the potential behavioral impact of removing incentives, especially as many remittance senders and recipients have grown accustomed to the existing benefits. The committee urged SBP and the Finance Division to conduct a detailed cost-benefit and sensitivity analysis, especially around: ECC Approval with Conditions The ECC gave conditional approval to SBP’s proposals but directed the authorities to: Takeaway:Pakistan is facing a tough balancing act — sustaining strong remittance inflows while rationalizing the rising cost of government-funded incentives. While the reforms aim to ensure fiscal sustainability, the transition must be handled carefully to avoid unintended disruptions in formal remittance flows.

The State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Review for Q3-FY25, providing an in-depth look at the evolving landscape of retail and digital payments across the country. The data points to continued progress in Pakistan’s shift toward digital financial services, led by mobile app-based banking and the increasing adoption of the Raast instant payment platform. Here are the key highlights and takeaways from the review: Retail Payments Cross 2.4 Billion Mark, Driven by Mobile AppsRetail payment volumes reached 2.4 billion transactions in Q3-FY25, showing a 12% quarter-on-quarter increase, while the total value of these transactions rose to PKR 164 trillion (↑8%). The primary contributor to this growth has been the rising use of mobile banking applications offered by banks, branchless banking (BB) operators, and EMIs. Digital Channels Now 89% of Retail Payments by VolumeA key development this quarter is that digital payments surpassed 2 billion transactions, now comprising 89% of total retail payment volume. However, in terms of transaction value, digital still accounts for only 29% (PKR 48 trillion), while the majority — 71% (PKR 117 trillion) — continues to be conducted over-the-counter (OTC), via bank branches and agent networks. This contrast highlights that while consumers are increasingly using digital platforms for everyday transactions, larger-value payments are still predominantly routed through traditional channels. Mobile App-Based Payments See Double-Digit GrowthMobile banking applications processed 1.686 billion transactions amounting to PKR 27 trillion, reflecting 16% growth in volume and 22% in value compared to the previous quarter. These apps—offered by banks, BB providers, and EMIs—enable users to perform a range of financial activities, from fund transfers to bill payments, without physical visits to banking outlets. The number of registered users also saw healthy growth: Banking apps: 22.6 million users (↑7%) BB wallets: 68.5 million users (↑6%) EMI wallets: 5.3 million users (↑12%) Internet Banking Expands with 71 Million TransactionsInternet banking usage also increased, with the number of registered users rising to 14.1 million (↑7%). These users conducted 71 million transactions valued at PKR 9.6 trillion during the quarter. While the transaction volume and user base continue to grow steadily, the total value transacted saw only a modest increase. Decline in Branch-Based Payments, Uptick in Agent ActivityTraditional bank branches processed 144 million payments totaling PKR 115.7 trillion, reflecting a 3% decline in volume. In contrast, branchless banking agents facilitated 123 million payments worth PKR 0.9 trillion, showing a 6% increase. This shift further illustrates the growing role of agent-based services in reaching unbanked and underbanked segments. Raast Gains Momentum Across P2P and P2M SegmentsThe Raast instant payment system maintained its upward trajectory: P2P (Person-to-Person) transactions: 368 million (↑25%), valued at PKR 8 trillion (↑31%) P2M (Person-to-Merchant) transactions: 1.5 million, totaling PKR 4.5 billion (more than double from previous quarter) Merchants onboarded: 770,000+ These figures indicate strong adoption of Raast across both individuals and businesses. The platform’s speed, cost-efficiency, and real-time capability continue to make it an attractive option for small and mid-sized payments. Large-Value Transactions Through RTGS Reach PKR 347 TrillionPakistan’s Real-Time Gross Settlement (RTGS) system processed 1.5 million large-value transactions in the quarter, with a total value of PKR 347 trillion—a 5% increase over the previous period. This confirms consistent growth in institutional and interbank settlements through regulated channels. Conclusion: A Steady Shift Toward Digital FinanceThe Q3-FY25 review underscores Pakistan’s steady transition toward a digital-first financial ecosystem. While digital channels now dominate transaction volumes, a significant share of value remains with OTC modes, indicating the need for further trust-building, financial literacy, and infrastructure development. With the continued expansion of platforms like Raast and rising mobile app penetration, Pakistan’s payment ecosystem is positioned for deeper digital integration in the quarters ahead. Snapshot of Pakistan’s Payment Systems — Q3 FY25 vs Q2 FY25 🧾 1. National-Level Overview Indicator Q2-FY25 (Dec 2024) Q3-FY25 (Mar 2025) Change Population (millions) 241.5 241.5 – Currency in Circulation (PKR Bn) 9,115.9 10,261.0 ▲ 12.5% approx. 🔄 2. Payment Transactions Summary Category Q2-FY25 Q3-FY25 Change Volume (M) Value (PKR Tn) Volume (M) Value (PKR Tn) RTGS – PRISM 1.63 330.5 1.53 347.1 ▲ 5% in value, ▼ 6% volume Retail Payments – Total 2,147.8 151.9 2,407.8 164.5 ▲ 12% volume, ▲ 8% value ▸ Digital Payments 1,883.5 43.3 2,141.1 47.9 ▲ 14% volume, ▲ 11% value ▸ OTC Payments 264.3 108.6 266.7 116.6 ▲ Slight volume/value 📝 Digital continues to grow faster than OTC in both volume and value. 🏛️ 3. Payment Systems Infrastructure Institution Type Q2-FY25 Q3-FY25 Change Banks (incl. Islamic windows) 32 31 ▼ 1 Microfinance Banks (MFBs) 12 11 ▼ 1 PSOs/PSPs 5 5 – EMIs 5 6 ▲ 1 Branchless Banking Providers 16 16 – PRISM Participants 59 59 – 🏪 4. Payments Network Footprint Infrastructure Component Q2-FY25 Q3-FY25 Change Bank & MFB Branches 19,110 19,170 ▲ 60 BB Agents 703,972 722,361 ▲ 18,389 ATMs 19,519 19,851 ▲ 332 CDMs/CCDMs 753 863 ▲ 110 PoS Machines 151,646 179,383 ▲ 27,737 PoS Enabled Merchants 115,177 140,861 ▲ 25,684 Registered E-Commerce Merchants 8,932 9,129 ▲ 197 Retail/Kiryana Merchants 679,745 778,936 ▲ 99,191 📝 Significant growth in PoS terminals and merchant onboarding supports rising digital enablement. 📲 5. Digital Channels & User Base (in millions) Channel/Instrument Q2-FY25 Q3-FY25 Change Internet Banking Users 13.3 14.1 ▲ 7% Mobile Banking Users 21.1 22.6 ▲ 7% Call Center / IVR Users 42.1 42.8 ▲ Slight BB Mobile App Users 64.3 68.5 ▲ 6.5% EMI E-Wallets 4.7 5.3 ▲ 12.8% Payment Cards (Credit/Debit) 55.7 57.5 ▲ 3.2% 📊 Snapshot of Payment Systems – Q2 vs Q3 FY25 Category Q2-FY25<br>(End Dec 2024) Q3-FY25<br>(End Mar 2025) Change (QoQ) Volume (Million) Value (PKR Trillion) Volume (Million) Value (PKR Trillion) RTGS – PRISM 1.63 330.5 1.53 347.1 ▼ 6% (Volume), ▲ 5% (Value) Retail Payments (Total) 2,147.8 151.9 2,407.8 164.5 ▲ 12% (Vol), ▲ 8% (Val) ▸ Digital Payments 1,883.5 43.3 2,141.1 47.9 ▲ 14% (Vol), ▲ 11% (Val) ▸ OTC Payments 264.3 108.6 266.7 116.6 ▲ Slight in both Vol & Val

Pakistan witnessed a robust surge in remittances in May 2025, with inflows hitting $3.7 billion, according to fresh data from the State Bank of Pakistan (SBP). This marks a 16% increase from April’s $3.18 billion, and a 13.7% rise year-on-year from $3.24 billion in May 2024 — a clear sign of the growing financial support from overseas Pakistanis. FY25: A Record-Breaking Year for Remittances So far in the current fiscal year (July–May FY25), Pakistan has received $34.9 billion in workers’ remittances — an impressive 28.8% jump compared to $27.1 billion during the same period last year. This strong growth is helping ease pressure on the country’s external account and boosting economic activity at home, especially for households reliant on remittance income. The SBP had already hinted at this momentum. In April, SBP Governor Jameel Ahmad projected a substantial current account surplus, crediting remittances for the “best performance on the external front in two decades.” Saudi Arabia Leads the Pack Breaking down the numbers by country, Saudi Arabia continues to be the largest source of remittance inflows. Pakistani workers there sent $913.9 million in May — a 26% increase from April, and 12% higher than the same month last year. UAE and UK Show Strong Growth Remittances from the United Arab Emirates also saw a solid boost, climbing 16% MoM to $754.2 million. Compared to May 2024, that’s a 13% increase. The United Kingdom contributed $588.1 million, marking a 10% monthly rise and a significant 24% year-on-year increase, showcasing stronger inflows from Europe. Stable Growth from the US From the United States, remittances reached $314.7 million, showing modest but steady growth — up 4% month-on-month. Why This Matters Remittances are more than just numbers — they are a lifeline for millions of Pakistani families and a pillar of economic stability. As the country navigates global financial pressures, this surge in inflows not only boosts foreign exchange reserves but also supports local consumption and growth. If current trends continue, FY25 could go down as one of the strongest years for Pakistan’s external finances — largely thanks to the unwavering support of its diaspora.

Imagine paying your bills, applying for a loan, booking a doctor’s appointment, and sending money abroad — all from one app on your phone. For billions of people, this isn’t a vision of the future. It’s already happening. And by 2029, nearly two-thirds of the global population — about 5.3 billion people — will be using digital wallets daily, according to projections from Juniper Research and Boston Consulting Group. What started as a simple tap-and-go alternative to cash is rapidly evolving into something much bigger: a foundational layer of the global digital economy. And it’s reshaping how individuals, businesses, and even governments move, manage, and interact with money. The Surge of Digital Wallets: A Global Snapshot From Asia to Latin America, digital wallets are experiencing explosive growth in both users and transaction volumes. By 2025, they’re expected to process over $10 trillion in payments globally — a number projected to reach $17 trillion by 2029. Let’s take a quick tour of what this looks like around the world: China Brazil & Latin America Asia-Pacific (APAC) Middle East & Africa More Than Just Payments: The Rise of the Super App Digital wallets are evolving into super apps — multifunctional platforms that offer far more than transactions. Some now include: In markets like China and Southeast Asia, platforms like Alipay and Grab even offer restaurant bookings, healthcare, travel, and job listings — essentially becoming digital lifestyle hubs. The Roadblocks to Global Adoption Despite this momentum, there are still big challenges to solve: 1. Fragmented Ecosystems Wallets often can’t talk to each other. Even within countries, lack of interoperability reduces their usefulness. Projects like BIS’s Project Nexus aim to connect national payment systems globally, but it’s still early days. 2. Complex Regulations Regulatory environments vary wildly. Compliance with GDPR (Europe), PDPL (UAE), DPDP Act (India), and other national laws demands expensive infrastructure. Add KYC/AML standards and digital ID policies, and the compliance maze becomes even more intricate. 3. Access & Infrastructure Gaps Many rural areas still struggle with low internet speeds, limited smartphone access, and low digital literacy. And the gender gap remains real — women in many developing nations are still 7–10% less likely to own or use mobile wallets. 4. Cultural Resistance In countries like Germany or Japan, where cash and traditional banks still dominate, digital wallets have seen slower uptake. Cultural trust and habits shape adoption more than technology alone. What’s Next? The Future of Digital Identity and Finance The next five years will be crucial. Digital wallets have the potential to become gateways to identity, access, and opportunity — especially for unbanked and underbanked populations. Emerging priorities include: Final Thoughts We’re not just digitizing cash — we’re building a borderless financial operating system. Digital wallets will become our keys to the global economy. The question isn’t whether they’ll dominate — that part is already happening. The real question is:Can governments, fintechs, banks, and regulators come together fast enough to make digital wallets work securely, inclusively, and at scale? Because if they can — the future of finance will truly be in your pocket.

According to data released by the State Bank of Pakistan (SBP) on Friday, the country received $3.2 billion in remittances from overseas workers in April 2025. This represents a 13.1% increase compared to the $2.81 billion received in April 2024. However, on a month-on-month (MoM) basis, remittances dropped by 22% from the $4.1 billion recorded in March. Cumulatively, remittances rose 31% during the first ten months of the fiscal year (July–April FY25), reaching $31.2 billion—up from $23.9 billion in the same period of FY24. Remittances continue to play a vital role in stabilizing Pakistan’s external account, boosting economic activity, and increasing disposable income for households that rely on overseas earnings. Last month, SBP Governor Jameel Ahmad expressed optimism over the country’s external position, citing strong remittance inflows as a reason to expect a current account surplus for the entire fiscal year. “This will be a substantial surplus and marks the best external account performance in the past two decades,” he stated. Remittance Breakdown by Country

The fintech revolution is rapidly transforming financial ecosystems across Pakistan and the GCC, reshaping how individuals and businesses access, move, and manage money.Driven by government initiatives, evolving consumer behaviors, and cutting-edge technologies, both regions are witnessing an unprecedented surge in digital payments, digital banking, and innovative financial services. Understanding the underlying platforms, regulatory landscapes, and growth opportunities is essential for anyone looking to build or expand in this dynamic sector. This article provides a structured, practical roadmap to the fintech architecture, processes, and opportunities shaping the future of finance in Pakistan and the GCC. What is Fintech? Fintech (Financial Technology) refers to the integration of technology into offerings by financial services companies to improve their use and delivery to consumers. It includes digital banking, payments, lending, investment platforms, insurance tech, and more.  Basic Structure of Fintech 1. Core Components 2. Stakeholders  Key Processes in Fintech  Fintech Architecture (Simplified)  [User App / Web Interface]        |        v [API Gateway / Middleware Layer]        |        +–> KYC Verification (NADRA, ID Services)        +–> Payment Processor (Stripe, Checkout, PayFast)        +–> Core Banking System (Temenos, Mambu, Custom Build)        +–> Notification Systems (SMS, Email, WhatsApp)        +–> Reporting & Analytics (Google Data Studio, Power BI) Fintech Architecture – Detailed Overview Fintech architecture is typically modular, API-driven, and built for scalability and security. Here’s a layered breakdown: 1.  User Interface Layer (Frontend) 🔧 Tools: Flutter, React Native, Next.js, HTML/CSS, BotPress 2.  API Gateway / Middleware Layer Acts as the central nervous system, managing communication between frontend and backend. 🔧 Tools: Postman, AWS API Gateway, Kong, Apigee 3.  Authentication & Identity Layer 🔧 Tools: Auth0, Firebase Auth, Twilio Verify, Okta 4.  Payments & Transactions Layer This layer handles actual money movement: 🔧 Components: 5.  Core Banking / Ledger Layer This is the heart of any fintech dealing with money: 🔧 Platforms: 6.  Integration Layer Used to talk to external systems: 7.  Data, Analytics & BI Layer 🔧 Tools: Power BI, Google Data Studio, Metabase, Snowflake 8.  Notifications & Communication Layer 🔧 Tools: Twilio, SendGrid, Firebase Cloud Messaging 9.  Security & Compliance Layer 🔧 Standards: PCI-DSS, ISO/IEC 27001, GDPR  Sample Data Flow: A QR Payment Example (Pakistan + GCC) csharp CopyEdit [User Scans Merchant QR]        ↓ [App Sends Payment Request]        ↓ [API Gateway Verifies JWT + Routes Request]        ↓ [QR Code Payment Engine Decodes Data]        ↓ [Core Ledger Checks Balance]        ↓ [Funds Debited from Wallet or Linked Account]        ↓ [Transaction Logged + Receipt Issued]        ↓ [Merchant Notified + Funds Settled via Raast/Mada]        ↓ [Confirmation Sent to User + Reconciled] Critical Platforms and Partners (Pakistan and GCC) Platform / Tool Pakistan GCC Raast Instant low-cost payments (P2P, P2M, G2P) via SBP’s Raast platform No direct Raast equivalent; GCC uses local RTGS (Real-Time Gross Settlement) 1LINK ATM network, IBFT (Interbank Funds Transfer) switch Similar services via UAEFTS (UAE Fund Transfer System), Mada in Saudi Arabia NADRA e-KYC Customer ID verification through NADRA Verisys Emirates ID KYC (UAE), National ID Integration (Saudi Arabia) PayFast, NIFT ePay Online payment gateways for local e-commerce and merchants PayTabs, Telr, PayFort (now Amazon Payment Services) for GCC online payments JazzCash, Easypaisa Leading mobile wallets for P2P transfers and merchant payments STC Pay (Saudi Arabia), Apple Pay, Google Pay, Careem Pay (UAE) UBL, HBL, Meezan Bank APIs API integrations for payment, transfers, account opening Open Banking APIs through banks like ADCB, Mashreq, FAB (UAE), and SAMA-regulated APIs in Saudi Arabia BNPL Services               Baadmay                                         Tabby , Tamara  Compliance and Regulation (Pakistan and GCC) Regulator Pakistan GCC Central Bank State Bank of Pakistan (SBP) UAE Central Bank, SAMA (Saudi Central Bank), CBB (Bahrain Central Bank) Financial Market Regulator SECP – Regulates investment, crowdfunding, insurance sectors DFSA (Dubai Financial Services Authority), ADGM, CMA (Saudi Capital Markets Authority) Telecommunication Authority PTA – Regulates SMS, digital communications TDRA (UAE), CITC (Saudi Arabia) for regulating mobile-based digital platforms Payment Licensing EMI Licensing, PSP, PSO Licensing from SBP Payment Service Provider licenses issued by Central Bank UAE, SAMA Licensing (Saudi) Data Protection / Cyber Law Drafted under PECA (Pakistan Electronic Crimes Act), now evolving further Strict under DIFC Data Protection Law, Bahrain Data Law, and KSA Cybersecurity laws Key Guidelines Across Both Regions: Opportunities and Challenges (Pakistan and GCC) Challenges Pakistan GCC Slow Bank Integrations Traditional banks slow in tech partnerships Big banks cautious but improving Cybersecurity Threats Increasing fintech attacks (especially wallets) Strict cybersecurity compliance, huge fines Financial Literacy Gaps Rural and lower-income segments need education Expat workers segment less educated in digital finance Cost of Compliance High cost for AML, KYC, SBP reporting Licensing fees and regulatory compliance are expensive Trust Building Among Lower Income Segments Fintech adoption low outside major cities Language, trust, and cultural adaptation challenges As Pakistan and the GCC continue to accelerate their digital transformation journeys, fintech stands at the heart of financial innovation and economic inclusion. By understanding the critical platforms, compliance frameworks, and emerging opportunities across regions, businesses and entrepreneurs can strategically position themselves for sustainable growth. Whether it’s enabling merchant payments, streamlining remittances, or building the next generation of digital banking solutions, the future belongs to those who invest in structured, secure, and customer-centric fintech models. The time to act is now — to bridge markets, build trust, and reshape finance across borders.

In a landmark achievement, Pakistan received a record-breaking $4.1 billion in workers’ remittances during March 2025, according to State Bank of Pakistan (SBP) Governor Jameel Ahmad. This is the highest monthly figure ever recorded for remittances in the country’s history. Speaking at the Pakistan Stock Exchange (PSX) to mark the start of Financial Literacy Week, Governor Ahmad announced that the SBP has revised its annual forecast for remittance inflows to $38 billion for FY2024-25—up from an earlier estimate of $36 billion. SBP’s data confirms that remittances surged by 37% year-on-year, compared to $2.95 billion in March 2024. Month-over-month, the growth stood at an impressive 30%, rising from $3.12 billion in February 2025. The SBP governor expressed confidence that Pakistan’s current account will remain in surplus throughout the fiscal year, highlighting this as the most robust external account performance in two decades. Ahmad also announced an upward revision of Pakistan’s foreign exchange reserves forecast. The SBP now expects to hold $14 billion in reserves by the end of June 2025, compared to the earlier projection of $13 billion. Despite recent outflows due to debt repayments, the SBP’s reserves currently stand at $10.6 billion. He projected an inflow of $4–5 billion from international financial institutions and other external sources by June’s end, further boosting the reserves. Economic activity in the country appears to be gaining momentum, with imports rising to $5.7 billion per month. “Those who believe that import restrictions are stalling economic activity should take a closer look at the data,” Ahmad remarked. On the macroeconomic front, the SBP expects Pakistan’s GDP to grow by 3% in FY25. Ahmad noted that the growth rate could have reached 4.2% had the agriculture sector maintained last year’s strong performance of 8%. Meanwhile, inflation is expected to tick upward in the coming months, following a historic low of 0.7% recorded in March 2025—the lowest in six decades.