Raqami Islamic Digital Bank (RIDB) and Euronet Pakistan have signed an exclusive agreement to boost digital payments in Pakistan. After obtaining a no-objection certificate from the State Bank of Pakistan in January 2023, RIDB secured in-Principal Approval (IPA) in September 2023 for a digital bank license.
Raqami Islamic Digital Bank (RIDB) and Euronet Pakistan have signed an exclusive agreement to boost digital payments in Pakistan
Euronet Pakistan, a division of Euronet Worldwide, a NASDAQ-listed company, will provide various services to RIDB, including Payment Switch, Card Management Solution, Credit Cards, ATM Controller, POS/E-Commerce Acquiring, Fraud Management Solution, and Card Tokenization. This collaboration aims to enhance operational efficiency and provide a seamless digital banking experience for Raqami’s customers.
“We are excited to be selected by Raqami as their technology partner for card issuance, fraud management and transaction processing, and play a pivotal role in the launch of the first Islamic Digital Bank in Pakistan. We’re proud to be part of Raqami’s evolution and we look forward to supporting them through our locally hosted, next-generation digital platform, that would allow scalability and agility, empowering the bank to focus on business value and deliver new card products and payment services in the shortest possible time”.
Kashif Gaya CEO of Euronet Pakistan commented:
Umair Aijaz CEO RIDB stated: “In the current era of industry wide digitization, a well-designed payment hub is not just a tool; it’s a prerequisite for innovation, inclusion, and economic empowerment. The SBP’s systematic additions and enhancements to the digital ecosystem in the country are yielding undeniable dividends for Pakistan, as evidenced with the declining cash in circulation from PKR 9,149 billion in June 2023 to PKR 8,288 billion in the quarter ending September 30, 2023.”
He further added: As Raqami prepares to launch as Pakistan’s first Islamic digital retail bank, we are committed to playing our part in this evolution. This exclusive agreement between Raqami and Euronet is a key partnership that will help set the foundation for the country’s first Islamic digital bank.”
Nadeem Hussain, Coach RIDB noted: “As part of a concerted drive by the Government of Pakistan to increase the availability and uptake of digital financial services in the country, the SBP has been spearheading numerous efforts. The latest Quarterly Payment Systems Review Report shows remarkable progress, with digital transactions accounting for an estimated 80% of total retail transactions processed by Banks, MFBs and EMIs, with only 20% accounted for by over the counter (OTC) transactions.”
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He went on saying: Similarly, the total number of ATMs now exceeds 18,000 while POS machines have increased to over 100,000. In this rapidly evolving ecosystem, Raqami believes the right partnerships will not only provide it with a viable starting point, but also enable it to rapidly achieve scale, while meeting the expectations of an increasingly digital savvy clientele. We are confident that this partnership with Euronet is not only beneficial for both entities, but also for the Pakistani customer.”
RIDB is one of five aspirants for the digital retail bank license, which are to be awarded by the State Bank of Pakistan under the Licensing and Regulatory Framework for Digital Banks (the Framework) 2022 and after incumbents achieve operational readiness and successfully conclude a pilot.
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