Page 40 - CMA Journal (July-August 2025)

Focus Section

FinTech Frontiers: How Digital Payments and

Data Analytics are Reshaping Finance in Pakistan

Introduction mobile technology.
According to SBP's
Financial inclusion entails providing individuals and
Annual Payment
companies with access to beneficial and inexpensive
Systems Review 2023,
financial products and services that satisfy their
Pakistan's digital
requirements—such as transactions, payments, savings,
payment transactions
credit, and insurance—delivered responsibly and
grew 49% from 4.3
sustainably. The State Bank of Pakistan (SBP) has
billion in 2022 to 6.4
prioritised financial inclusion as a fundamental policy
billion in 2023–24. The
objective, seeking to integrate the unbanked and
transaction value rose
underbanked people into the formal financial system
from USD 90 billion to
(SBP, 2023). In the last ten years, FinTech has been a
USD 125 billion, a
significant driver in promoting this agenda. FinTech in significant gain given Dr. Abubakar Khaliq, Ph.D.
Pakistan, widely defined as technology-driven
Pakistan's GDP growth. Research Assistant at
innovation in financial services, has progressed from COMSATS University and
Mobile wallet accounts
basic branchless banking systems to advanced digital Faculty Member at SZABIST
increased from 65
payment platforms, including AI-driven analytics. Raast, University, Islamabad
million to 82 million,
Pakistan's quick payment system, and the SBP's Digital
while Raast transactions surged fourfold, highlighting
Banking Licensing Framework have aided these
the rapid popularity of real-time payment systems.
advances.
Mobile wallets like Easypaisa Year-on Year Transaction Volumes (Billion Transactions) Digital Payment Market Share in Pakistan (2023-24)
and JazzCash, and frictionless
e-commerce links are the most Easypaisa Others Raast
JazzCash
essential FinTech for the 2.5 Raast
average Pakistani. The "invisi- 2.0 10.0% 18.0%
ble driver" underlying this is
data analytics, which uses Transactions (Billion) 1.5
transaction patterns, 38.0% 34.0%
behavioural data, and predic- 1.0 Easypaisa
tion algorithms to profile
customers, uncover fraud, and 0.5 JazzCash
customise products. Data
2022 Year 2023-24
analytics and digital payments
are revolutionising the finan- Figure 1: Pakistan's FinTech Ecosystem 2023–24 at a Glance
cial industry by giving rural communities, women entre-
The following three main factors have fuelled this
preneurs, and micro- businesses access to lending,
growth:
savings, and payment options. These twin innovation
strategies will improve Pakistan's economic involvement a) Regulatory Push: The State Bank of Pakistan's
and promote economic growth and social equality as the introduction of Raast in 2021 signified a pivotal
industry matures. moment in the national payment system. By
enforcing interoperability, Raast eliminated the
Pakistan's Digital Payment Ecosystem "walled garden" strategy that had previously
obstructed consumers of one bank or FinTech from
In three years, Pakistan's digital payments sector went
seamlessly transacting with another. The
from developing to one of South Asia's fastest- growing
implementation of SBP's Digital Banking Licensing
FinTech ecosystems. This change is due to legislative
Framework in 2022 facilitated the emergence of
reforms, market competition, and the rapid adoption of
wholly digital banks, enhancing competition.
38 ICMA’s Chartered Management Accountant, Jul-Aug 2025