Pakistan’s financial services sector is rapidly evolving, and e-cash is at the forefront of this transformation. Digital banking apps have emerged as a game-changer, offering innovative solutions suited to the diverse needs of our population.
Although smartphones and internet connections are beginning to pervade the general population, approximately 81% of Pakistanis do not have bank accounts! This statistic can be attributed to lack of accessibility and awareness of the benefits of having access to financial services.
Digital literacy has played a huge role in increasing financial literacy. Mobile Money Wallet registrations have doubled in the two-year period between 2020 to 2022, showcasing how such services can encourage people to understand and take control of their finances.
We’ve made a list of the five ways e-cash is revolutionizing financial services in Pakistan, and the companies leading the way:
1. Financial Inclusion
E- cash is breaking down barriers by making digital banking easy and accessible to millions of Pakistanis. Digital literacy in Pakistan is on the rise, even in remote areas.
The youth of Pakistan has been vital in this digital transformation! It’s their willingness to test out new technology that has given online financial services the momentum they need. In absolute agreement with this is Zindigi, a digital bank whose mission is to ease the lives of millions of people through efficient and easy transactions.
Zindigi takes a far more youthful approach, and has streamlined its services for millennials and the Gen-Z. In line with their provision of online transactions and mobile wallet services, Zindigi ensures a user-friendly interface alongside multiple financial services such as money transfer, general payments, mobile services, and investments. Furthermore, they offer the first translucent card in Pakistan so that we can pay for the subscriptions we really want, like Netflix and Spotify!
2. THE Wallet for International Payments
Freelancing in Pakistan is a burgeoning field, where many individuals are now offering their skills and services on international platforms. However, receiving international payments has long been a struggle in Pakistan, with concerns of exchange rate conversion and many platforms charging extra fees.
It’s here that SadaPay eliminates its competition! It cuts out the middleman by connecting you directly to your client and ensures real-time updates of where your payment is. It also takes care of any tax related concerns you may have by providing a Proceeds Realization Certificate for tax season.
3. E-Cash Transactions Made Instant
Once you go cashless, it’s hard to wrap your mind around the need for carrying money. In Pakistan, where cash has traditionally been king, cashless transactions have slowly entered the public consciousness as the most efficient way of making payments. Users can now make payments at local shops, pay utility bills, and access branchless banking services for money transfers – all while mitigating the risks of carrying large amounts of cash!
In line with this, JazzCash is Pakistan’s largest digital wallet offering the longest reach for making essential payments. JazzCash is also offering an innovative new way for digital payments amongst individuals through its partnership with RAAST. RAAST is Pakistan’s first instant payment service that ensures seamless fund transfers in real-time. With JazzCash, it also comes with no transaction fees, no restrictions on type of financial institution, and greater security.
4. Investment Opportunities
E-cash in Pakistan has begun to go beyond transactions – it’s opened up investment opportunities as well! Investing in Pakistan has traditionally been limited through investment banks and brokers, thus making it inaccessible to most people. Having localized apps that provide information and user-friendly tools can help increase financial literacy across many socio-economic groups and allow people to make informed investment decisions from an early age.
It’s here that Zindigi steps up again! It offers multiple options for a varied portfolio through stock offerings and mutual funds. For the former, Zindigi’s app has a built-in stock trading platform that allows you to utilize e-cash and own shares in companies listed with the Pakistan Stock Exchange. For the latter, Zindigi offers three types of mutual funds:
- JS Income Fund
- JS Islamic Income Fund
- JS Cash Fund
Furthermore, professional fund managers are responsible for managing your investment portfolio, so you can focus on other things!
5. Enhanced Security
One of the most significant advantages of e-cash is the enhanced security it offers. Digital banking apps can prioritize the safety of your funds and personal information. They can also offer greater control over security by using multi-factor authentication and encryption mechanisms. These can protect your accounts from unauthorized access and fraud and also provide reassurance to users about the state of their finances.
EasyPaisa is one of the digital banking companies utilizing such security mechanisms to ensure your safety and privacy! Customer data is treated as an asset and protected through encryption, passwords, and physical security at their secure servers. Their main security feature is the five digit MPIN, without which no transactions can be authorized or authenticated!