The federal government has told the State Bank of Pakistan (SBP) to prepare a working paper so a Raast QR merchant discount rate (MDR) scheme can be approved. The directive comes as the number of active merchants accepting digital payments has risen to 2.03 million under the Prime Minister's Cashless Pakistan initiative, according to TechJuice.

What the government has asked SBP to do

Minister of State for Finance Bilal Azhar Kayani gave the instruction at a high-level Cashless Pakistan meeting at the Finance Division. The meeting reviewed progress against digital payment targets and discussed improvements to the Raast QR MDR framework. SBP is to prepare the working paper needed to process approval of the scheme.

The reported aim is to support further growth in digital payments. No MDR rate has been published. The report gives no percentage, no start date for the scheme and no word on who would pay or receive the fee.

Merchants: from 500,000 to 2.03 million

The government reported that active digital payment merchants have grown from 500,000 to 2.03 million, a fourfold increase, and that overall digital payment volume has doubled within one year. These are government figures as reported by TechJuice. We have not seen the underlying data.

For context on the consumer side, see our look at what SBP's latest data says about digital payments.

Where Raast QR is already used

According to the same report:

  • Raast QR codes have been added to more than 45 million gas and electricity bills, so customers can pay those bills digitally.

  • All NADRA centres now have Raast QR payment facilities.

  • Payments for Asaan Assignment Accounts across the country will be processed through Raast from 16 November, as the report words it.

If you are new to the rail, start with how Raast works.

Who was at the meeting

Representatives came from the Finance Division, SBP, the Ministry of IT and Telecommunication, NADRA, Easypaisa, JazzCash, Bank Alfalah, JS Bank and Karandaaz Pakistan. The minister also plans to meet bank presidents and chief executives in Karachi to discuss expanding digital payment services, per the report.

Why it matters for fintech builders

An MDR is the fee a merchant pays to accept a payment. Whether Raast QR carries one, and how high it is, will shape the economics for banks, wallets and payment apps that sell QR acceptance to shops. Until the working paper is approved and published, there is nothing to plan around.

What to watch:

  • The rate and who bears it. The report does not say.

  • Timing. SBP has been asked for a paper, not to launch a scheme.

  • Merchant growth. The jump to 2.03 million is the number any pricing decision will be measured against.

We will update this post when SBP or the Finance Division publishes the scheme.