Meezan Bank is stepping up its digital payments strategy, expanding its merchant network and accelerating adoption of instant payment solutions as Pakistan’s shift toward a cashless economy gathers pace, senior bank official said.
The move comes as digital transactions continue to rise sharply across the country. Data from the State Bank of Pakistan shows that around 92% of retail transactions are now conducted through digital channels, reflecting a growing shift away from cash-based payments.
Within this evolving landscape, Meezan Bank has emerged as a key player in merchant acquiring and digital payment enablement.
The bank’s merchant base has crossed 50,000, with average monthly transaction volumes reaching approximately Rs50 billion, according to industry estimates.
Speaking on the development, Ahmed Ali Siddiqui, Group Head Consumer Finance and Digital Banking at Meezan Bank, said the transition toward digital payments is not just a technological shift but an economic necessity.
“The digital transformation of Pakistan’s financial landscape presents a significant opportunity to improve transparency, strengthen documentation and support inclusive economic growth,” Siddiqui said. “By enabling merchants to accept digital payments seamlessly, we are helping businesses move from informal cash-based operations into the formal economy.”
Pakistan’s economy continues to face structural challenges linked to its reliance on cash, including a low tax-to-GDP ratio of around 9–10% and limited access to formal financing for SMEs, which contribute nearly 40% to GDP but receive less than 10% of bank credit.
Industry experts say digital payments can play a critical role in addressing these gaps by improving financial records, enhancing tax collection and reducing transaction inefficiencies.
Cash handling alone is estimated to cost between 0.5% and 1.5% of GDP, while cash-on-delivery still accounts for a majority of e-commerce transactions.
Meezan Bank has been actively expanding its digital acquiring infrastructure, including point-of-sale (POS) terminals, QR-based payments, and e-commerce payment solutions.
The bank is also integrating with Raast, Pakistan’s instant payment system, to enable faster, low-cost and secure transactions for both merchants and consumers.
As part of its growth strategy, the bank is targeting the onboarding of more than 140,000 additional merchants and expanding Raast acceptance across a network of over 40,000 POS terminals. It has also introduced features such as instant QR code generation and soundbox devices that provide real-time transaction alerts, aimed at improving merchant confidence in digital payments.
Market data indicates strong momentum in Raast-based merchant payments, with transaction volumes growing at an average monthly rate of around 40%, reflecting increasing acceptance among small retailers and micro-businesses.
Siddiqui said continued investment in infrastructure and innovation would be critical to sustaining this growth.
“Our focus is on building a robust digital ecosystem that is accessible, secure and aligned with Shariah principles,” he said.
“This will not only strengthen our market position but also contribute to Pakistan’s broader goal of a documented and cashless economy.”
Analysts say that as banks expand digital payment capabilities and onboard more merchants, Pakistan could see faster progress toward financial inclusion and economic formalization, particularly among underserved segments.
With transaction volumes rising and institutional support strengthening, the country’s digital payments ecosystem appears poised for continued expansion in the coming years.
