Despite major developments in Pakistan’s digital payments infrastructure, only 151,000 retailers out of over 5 million Micro, Small, and Medium Enterprises (MSMEs) have installed point-of-sale (POS) systems, according to the latest data from the State Bank of Pakistan (SBP).
This results in a POS penetration rate of just 1 device per 1,596 people—far behind countries like India (158:1) and Brazil (10:1). The gap highlights Pakistan’s heavy reliance on cash-based transactions in retail and the need for rapid expansion of digital payment solutions.
To bridge this gap, Karandaaz Pakistan has launched the “Raast Rapid Merchant Onboarding and Facilitation Entities (RMOFE)” initiative, aimed at onboarding a wide range of physical retail and service providers—especially in Tier 2 and Tier 3 markets—onto the Raast instant payment system.
The program will target:
- Traditional and modern retail outlets (kiryanas, grocery stores, pharmacies, supermarkets, fuel stations)
- In-person service providers (delivery agents, ride-hailing drivers, food delivery workers)
- Women merchants operating at physical locations
Raast offers low-cost, interoperable solutions like Raast IDs, QR codes, and IBAN-based payments. To incentivize adoption, the Merchant Discount Rate (MDR) will be maintained at zero during the project period, with costs covered by grant funding.
Only merchants engaged in ethical and lawful business activities will be eligible, and project partners must ensure due diligence during onboarding. Participation is open to a wide range of partners, including fintechs, digital platforms, and non-banking service providers with the capacity to digitize cash-heavy businesses.
