Pakistan’s first ever instant payment system; RAAST has been a valuable addition to the Digital financial system of the country. The launch of this service by Prime minister Imran Khan has raised the hopes. Having the system shift the country towards a cashless economy making tax collection easier for the government.
How does RAAST work?
Whatever bank you currently have an account in has its own payment system which needs to be updated and maintained. If you want to send money from your bank to another bank, there needs to be some sort of communication between the two bank’s payment systems. There is no direct communication channel so here systems like 1-link and MNET come in. But since these systems are slow and charge a hefty amount for each transaction, users avoid using them.
Also when you withdraw money from your bank’s ATM it charges you nothing but if you use other bank’s ATM you get charged everytime.
This is where this service works; with an infrastructure that provides a communication system for banks to use for instant transaction at a very limited cost. With RAAST, a cheque sent for clearing could be done in minutes. An app built using RAAST as host could let you invest in stocks instantly and you can have your bank account and credit card information at one place so no need for memos. It is rightfully highlighted that the possibilities of this system are endless.
Three Core Benefits
Here, we explain why it is rightfully the talk of the town in 3 core benefits:
- PAYMENTS IN REAL TIME: RAAST is introduced as an instant payment system this mean that it enables end-to-end digital payments between individuals, businesses and government entities in no time.
- ZERO TRANSACTION FEE: RAAST is a digital payment solution that comes with no transaction charges. This will make small-value retail payments cheap and affordable.
- SECURE AND TRUST-WORTHY: RAAST comes with confirmed authorized transactions, ensure data protection and provides enhanced fraud detection services.
Banks in Pakistan are not forced to adopt this system but there has been quick response from banks all over the country in adapting the newly released system. Government of Pakistan also has decided that payments such as salaries and pensions will be made through this service. It has also included payments from nationwide financial support programs such as Benazir Income Support program and Ehsaas Emergency Cash program to be done through RAAST.
RAAST is devised to facilitate retail payment settlements with much great efficiency. It will take Pakistan one step forward in the digital world.
For any inquiries reference technical aspects; you can contact ecommerce team firstname.lastname@example.org
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January 12, 2024
September 5, 2023