Hajra Naz
A Digital Payment Index (DPI) is being developed at a national level to monitor and evaluate Pakistan’s progress in payment digitization. This index will assess the effectiveness and reach of the country’s digital payment infrastructure, usage of digital channels, and consumer awareness of digital payment tools.
This index supports Pakistan’s digital goals and will give a clear picture of how digital payments are used across different areas and groups. It will also highlight any weaknesses in the current system, helping the government make better policies and investments to improve it.
Several countries have introduced similar indices to evaluate their digital payment landscapes globally. A notable example is the Mastercard Digital Payment Index, which offers insights into the digitalization of consumer payments in seven Central and Eastern European countries.
Pakistan’s DPI will measure key indicators like account and card penetration, instant payment enablement, QR code and contactless POS adoption, and mobile payment usage. The index will also assess consumer awareness and comfort with digital payment solutions, tracking cashless payment usage and overall adoption through various KPIs.
This initiative, led by Karandaaz Pakistan in collaboration with the State Bank of Pakistan (SBP), follows their previous work on the RAAST payment system.
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The Aim of the Digital Payment Index
The DPI aims to:
- Establish a reliable tool that reflects the development and adoption of digital payment systems in Pakistan.
- Offer actionable insights to support the local payments ecosystem, standardizing scattered data into a clear, trackable measure.
- Track the frequency and volume of digital transactions, helping stakeholders monitor the progress of digital payments.
- Provide insights into consumer preferences and challenges regarding payment methods, access, convenience, and security.
- Standardize key performance metrics to evaluate digital payment growth across sectors and regions.
- Collect and analyze data from multiple sources to keep the index accurate and up-to-date.
- Allow for benchmarking Pakistan’s progress against other nations, identifying best practices and areas for improvement.
The index will be regularly updated based on data from the SBP and Karandaaz Pakistan, which is seeking proposals to design this comprehensive measurement tool. A well-constructed index will guide policymakers, regulators, and financial institutions in making informed, data-driven decisions, ultimately fostering a thriving digital economy in Pakistan.
