Pakistan to Launch National Digital Payment Index Soon to Accelerate Payment Digitization

In a landmark move to track and enhance the progress of digital payments, Pakistan is set to introduce a nationalDigital Payment Index (DPI), aiming to assess the penetration and effectiveness of digital payment infrastructure across the country. The initiative will provide a crucial tool for policymakers, financial institutions, and private sector players to gauge the adoption of digital payments and steer future developments in line with Pakistan’s digital transformation agenda. The DPI will serve as a comprehensive framework to measure the extent of digital payment adoption across various channels, sectors, regions, and demographic groups. By identifying gaps and opportunities in the current digital payment ecosystem, the index will support targeted policy interventions and investments, driving the nation toward a more inclusive and efficient financial system. The planned index, to be developed under the leadership ofKarandaaz Pakistan—which previously partnered with theState Bank of Pakistan (SBP)to launch the RAAST payment system—will combine scattered data into a structured, standardized, and easy-to-track measure. The initiative is designed to offer valuable insights into consumer behavior and the effectiveness of digital payment solutions, enabling various stakeholders to track the evolution of Pakistan’s digital payment infrastructure. Globally, several countries have already adopted similar indices to monitor the progress of payment digitization. One prominent example is theMastercard Digital Payment Index, which provides a holistic view of the digitalization of consumer payments in Central and Eastern European countries. Inspired by such models, Pakistan’s DPI will include key indicators such as account penetration, card usage, POS (Point-of-Sale) adoption, QR code payment enablement, and mobile payment infrastructure. The DPI is envisioned to achieve several important objectives: To ensure the index remains relevant and accurate, the DPI will be updated periodically, using data provided by the SBP and Karandaaz Pakistan. This will provide a dynamic tool for continuous monitoring of digital payment trends and consumer behavior in Pakistan. Karandaaz Pakistan has already invited proposals for designing the comprehensive DPI, with a focus on integrating data from various publicly available sources into a standardized measurement tool. The DPI will play a crucial role in helping policymakers, regulators, and private sector players identify gaps, formulate targeted interventions, and monitor the impact of these efforts over time. As Pakistan moves forward with its digital transformation agenda, the introduction of a national DPI is a significant step toward building a vibrant digital economy. By fostering increased adoption and innovation in the payment space, the DPI will position Pakistan at the forefront of digital financial services in the region, paving the way for sustainable economic growth.