Islamabad, Pakistan – Despite significant advancements in Pakistan’s digital payments infrastructure, adoption of point-of-sale (POS) systems among Micro, Small, and Medium Enterprises (MSMEs) remains critically low. According to the latest data from the State Bank of Pakistan (SBP), only 151,000 retailers out of an estimated 5 million MSMEs have installed POS systems—translating to a penetration rate of just one device per 1,596 people.
This figure puts Pakistan far behind regional and global peers. For comparison, India has a POS penetration rate of 158 devices per 1,000 people, while Brazil leads with 1 device for every 10 individuals. The data underscores Pakistan’s continued reliance on cash-based transactions, particularly in its informal economy.
To address this gap, Karandaaz Pakistan has launched the “Raast Rapid Merchant Onboarding and Facilitation Entities (RMOFE)” initiative. The program is designed to accelerate the onboarding of a diverse range of physical retail and service providers onto Raast—the country’s instant payment system developed by SBP.
The initiative will primarily target merchants and service providers operating in Tier 2 and Tier 3 markets, including:
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Traditional and modern retail outlets such as kiryana stores, grocery shops, pharmacies, supermarkets, and fuel stations
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In-person service providers like delivery agents, ride-hailing drivers, and food delivery workers
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Women merchants operating from physical locations
Raast enables low-cost, interoperable digital payments through features such as Raast IDs, QR codes, and IBAN-based transfers. To encourage adoption, the Merchant Discount Rate (MDR) will be maintained at zero during the project period, with associated costs covered through grant funding.
Only merchants engaged in ethical and lawful business activities will be eligible for onboarding. Project partners—ranging from fintechs and digital platforms to non-banking service providers—will be required to conduct due diligence as part of the registration process.
The RMOFE initiative is expected to play a critical role in digitizing Pakistan’s cash-heavy economy and expanding financial inclusion by enabling MSMEs to join the formal digital ecosystem.
