KARACHI: The coronavirus pandemic is accelerating Pakistan’s shift toward a cashless future as more people have been forced to overcome the fear of using digital payment methods, senior bankers said on Wednesday after a survey showed a significant rise in online shopping.
The survey by financial giant Visa on the impact of the COVID-19 pandemic on payment behavior in Pakistan revealed on Monday that 43 percent of consumers have reduced in-store shopping since the virus outbreak, while for their e-commerce purchases more than half (55 percent) were using cards instead of cash on delivery (COD).
“When the consumers started using technological platforms for the payment during the pandemic, they realized that it is easy and secured way of making transaction,” Syed Ibne Hassan, vice president of National Bank of Pakistan, told Arab News. “The fear related to the use of technology has subsided now and consumers are more familiar (with it).”
Pakistan’s economy has been dominated by cash as this payment method is considered safe by both buyers and sellers. Most wages and salaries are paid in cash as well. The pandemic, however, has forced more people to use cards and contactless payments due to movement restrictions and lockdowns following the outbreak. People also not want to have to touch cash and risk contracting the virus.
The Visa survey showed that 55 percent of online shoppers expressed their willingness to continue to make more purchases online, and 49 percent said they will continue to opt more for paying with card over COD. For in-store purchases, 56% of consumers say they will continue to use QR code payments with their mobile phones more.
“This trend accelerated during the COVID-19 pandemic. For perspective, at Habib Bank Limited (HBL), digital transactions on HBL Mobile and Internet banking have risen by almost 90 percent compared with the same period last year. This growth proves that COVID-19 fueled a rise in digital payments in Pakistan,” Sagheer Mufti, chief operating officer at HBL, told Arab News.
Pakistan’s central bank expects that migration to electronic means will boost the country’s gross domestic product (GDP) by 7 percent, create 4 million jobs, and result in $263 billion in new deposits — representing a potential market of $36 billion by 2025.
With increased usage of digital payments, however, rises the probability of cyberattacks.
“With increased usage both among experienced and first-time users, cybercriminals too are keen to capitalize on the increased activity and vulnerability, especially of first-time online shoppers,” Neil Fernandes, Visa’s head of risk for the Middle East and North Africa, said.
“That is why educating consumers about safe payment behavior is critical not only for the moment but as we move forward and adapt to the new normal.”
Coronavirus accelerates Pakistan’s shift away from cash to digital payment, bankers say
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Coronavirus accelerates Pakistan’s shift away from cash to digital payment, bankers say
- 43 percent of Pakistani consumers surveyed by Visa have reduced in-store shopping since the virus outbreak
- Pandemic has forced more people to use cards and contactless payments due to movement restrictions and lockdowns
Pakistan’s president defends ongoing strikes in Afghanistan, urges Kabul to dismantle militants
- Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday
- Pakistan’s military says it is only targeting Afghan military installations to avoid civilian casualties
ISLAMABAD: Pakistan’s president on Monday defended his country’s ongoing military strikes in neighboring Afghanistan, saying Islamabad tried all forms of diplomacy before targeting militants operating from Afghan territory, and called on the Taliban government in Kabul to disarm groups responsible for attacks in Pakistan.
Pakistan earlier said it is in “open war” with Afghanistan, alarming the international community. The border area remains a stronghold for militant organizations including Al-Qaeda and the Daesh (Islamic State) group.
“(The Afghan Taliban) must choose to dismantle the terror groups that survive on conflict and its war economy,” Asif Ali Zardari said during a speech to lawmakers, adding that “no state accepts serial attacks on its soil.”
Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday. Since then, Pakistan has carried out operations along the border, with Information Minister Attaullah Tarar claiming the killing of 435 Afghan forces and the capture of 31 Afghan positions.
Kabul has denied such claims.
In Afghanistan, the deputy government spokesman Hamdullah Fitrat said Pakistan’s military fired mortar shells at a refugee camp in eastern Kunar province, killing three children and injuring three others.
Afghanistan’s defense ministry said Afghan forces carried out strikes targeting a Pakistani military facility near Paktia province, causing “substantial losses and heavy casualties.”
Pakistan’s military did not respond to questions. It has said Pakistan is only targeting Afghan military installations to avoid civilian casualties.
Pakistan has witnessed a surge of violence in recent months and blames it on the outlawed Pakistani Taliban, known as Tehreek-e-Taliban Pakistan or TTP. It operates both inside Pakistan and from Afghan territory.
Islamabad accuses Afghanistan’s Taliban government of providing safe havens for the TTP, which Kabul denies.
The latest cross-border fighting ended a ceasefire brokered by Qatar and Turkiye in October. The two sides failed to reach a permanent agreement during talks in Istanbul.
Zardari reiterated Pakistan’s call for talks, saying, “We have never walked away from dialogue.”
The Pakistani leader again accused Afghanistan of acting as a proxy for India by sheltering militant groups.
“Stop being used by another country as a battlefield for their ambitions,” he said.
Zardari cited a recent report from the United Nations Security Council’s monitoring team that described the presence of militant groups in Afghanistan as an extra-regional threat.
