05 Sep 2024
Did you know that 103,120 Pakistanis reside and work in the diverse land of Australia? These Pakistani expats send money to Pakistan from Australia regularly. Most of them have been living in Australia for decades. Hence, they need to be made aware of the digital money transfer upgrades in Pakistan over the last few years. Knowing about these upgrades will allow you to send remittances smoothly and hassle-free. So, keep reading this blog to learn about the future of digital money transfers in Pakistan.
Here is a complete list of recent digital money transfer upgrades Pakistan has seen.
The State Bank of Pakistan (SBP), Pakistan's regulatory body, decided to regulate electronic money institutions (EMIs) in April 2019 due to the industry's growth and the ongoing entry of new players. These institutions were granted licenses by SBP to issue electronic money for digital payments, with the following goals:
Right now, eight organizations, three of which have received in-principle approval and the remaining four are in the pilot phase, have EMI licenses and are functioning as authorized EMIs.
The Prime Minister introduced "Raast," the nation's first immediate digital payment system, in 2021 to transition the economy away from cash and toward digital payments. This system allows for end-to-end digital payments between individuals, corporations, and governmental organizations.
The project, introduced by Prime Minister Imran Khan, is a component of his "Digital Pakistan Vision," which aims to integrate underprivileged groups into the official economy. Non-resident Pakistanis can now easily invest in Pakistan-based savings schemes through an online money transfer from Australia to Pakistan. This account is appropriate for transactions involving both PKR and AUD. With the help of this option, they can obtain financial services in Pakistan without needing to visit the consulate or embassy.
In March 2021, SBP introduced for consultation the Exposure Draft of the Digital Bank Regulatory Framework, with the aim of
Customers are predominantly served by digital banks via online and electronic channels that were previously conducted at bank branches. Unlike typical banks, a digital bank would not have a physical branch network, headquarters, or regional headquarters.
Every day, new technologies emerge that can help you send money to Pakistan online from Australia to provide financial support for your loved ones. Therefore, you must watch the new trends in digital money transfer services.
Over the last ten years, several limitations have been placed on online payments. One of the most significant ones is the restricted availability of payment choices, including credit or debit cards. However, the use of cash is quickly decreasing as digital wallets become more popular.
Blockchain technology is another new money transfer method to watch in 2024. A number of retailers are more widely accepting popular cryptocurrencies like Bitcoin and Ethereum as a replacement for cash. However, blockchain may take some time to make its way into mainstream Pakistan.
In the world of digital money transfers, mobile wallets are the winners. According to a study, there were approximately 2.8 billion mobile wallet users in 2021; however, by 2025, that number is expected to rise to 4.87 billion. It will account for about half of the world's population by then. ACE Money Transfer is the best example, with thousands of users worldwide. It offers reliable, secure, and affordable remittance sending services to Pakistani expats in Australia.
Three things are necessary for Pakistan to fully embrace the digital banking revolution. First, service providers should view things from the perspective of their clients. Second, commercial banks and fintechs should collaborate more to create open application programming interfaces, leading to open banking. Fusing the creative minds of fintechs with the substantial resources of commercial banks can create a win-win scenario. Third, the government should contribute to creating an atmosphere in which P2P and G2P payments become commonplace.
ACE Money Transfer is playing its part through collaborations and enabling smooth digital money transfers between countries. Sign up for ACE Money Transfer to make a money transfer from Australia to Pakistan with market-competitive exchange rates and low transfer fees.
An EMI license allows electronic money institutions to issue digital money for payments, enabling seamless and secure electronic transactions. This license is essential for businesses looking to offer modern payment solutions.
Raast enables instant digital payments between individuals, businesses, and government entities, ensuring faster and more efficient money transfers for expats. It provides a cost-effective and reliable way to send money back home.
DRBs serve retail customers, including individuals, SMEs, and agricultural enterprises, without physical branches. They offer innovative banking solutions through digital platforms and provide 24/7 access to banking services, enhancing customer convenience. *Please write in English.
Digital wallets reduce the reliance on cash, offering more convenient payment options and facilitating easy access to a variety of financial services. They also enhance security by minimizing the risk associated with carrying physical cash.
Biometric authentication uses unique physical traits like fingerprints or facial recognition for secure access, providing a highly safe and user-friendly authentication method. It adds an extra layer of protection to digital transactions and account access.
References:
https://www.homeaffairs.gov.au/research-and-statistics/statistics/country-profiles/profiles/pakistan
https://www.paymentsdive.com/news/mobile-wallet-use-projected-to-surge/603910/
