SBP to Enforce RAAST Integration in E-Commerce by March 2025

The State Bank of Pakistan (SBP) has directed all banks and financial institutions to enable the RAAST payment system for e-commerce platforms and online shopping businesses by March 31, 2025, in a bid to accelerate digital payment adoption across the country.

RAAST Integration for Merchants

Banks will facilitate businesses connected to the banking system by enabling RAAST Person-to-Merchant (P2M) digital payment acceptance services. The directive applies to existing account holders providing in-store and online shopping services, as outlined in the SBP’s circular.

Additionally, the SBP has mandated that new merchants and businesses onboarded by financial institutions must also be equipped with RAAST P2M services as part of their account opening process. Institutions may offer these services either through direct integration with the RAAST system or in collaboration with SBP-regulated entities, such as Electronic Money Institutions (EMIs), Payment System Operators (PSOs), or Payment Service Providers (PSPs).

Features of RAAST P2M Service

The RAAST P2M service is designed to streamline and digitise merchant and business transactions. Key features include:

• Payment Acceptance Tools: Businesses can accept payments via Quick Response (QR) codes, RAAST Alias, International Bank Account Numbers (IBANs), and Request-to-Pay (RTP) functionality.
• Enhanced Access Points: Banks are required to integrate P2M transaction capabilities into mobile apps, internet banking portals, and USSD channels to ensure seamless accessibility for merchants and consumers alike.

SBP’s Vision for Digital Transformation

Launched as part of the central bank’s broader digital payment initiative, the RAAST P2M service aims to drive the digital transformation of Pakistan’s payment infrastructure. By enabling faster, secure, and interoperable payment solutions for businesses, the initiative seeks to enhance financial inclusion and reduce reliance on cash-based transactions.

The SBP believes that the widespread adoption of RAAST P2M will not only boost operational efficiency for merchants but also provide consumers with convenient, cost-effective payment options.

March 2025 Deadline

Banks and financial institutions have been given until March 31, 2025, to comply with the directive and ensure the availability of RAAST P2M services for all existing and new-to-bank merchants.

The SBP’s push for RAAST integration is expected to play a pivotal role in Pakistan’s journey toward a cashless economy, fostering greater efficiency in business transactions and strengthening the digital payment ecosystem.