The federal government has approved a Rs 3.5 billion subsidy aimed at boosting digital payments and merchant onboarding through Raast QR codes. The initiative, part of the government’s broader push towards a cashless economy, is set to promote Person-to-Merchant (P2M) transactions between September 1, 2025, and June 30, 2026.
According to the State Bank of Pakistan (SBP), the subsidy will be provided to financial institutions at a rate of 0.5% of each P2M transaction value, or Rs 100, whichever is lower. The incentive is designed to encourage merchants to adopt Raast and receive payments digitally through QR codes.
This subsidy will be shared equally between the Merchant’s Financial Institution (FI) and the Customer’s Financial Institution (acquiring and issuing FIs). Additionally, the regulated entities (REs) involved in onboarding and servicing the merchants may charge up to 0.25% of the transaction value.
The government has set an annual ceiling of Rs 3.5 billion for the subsidy, and if the total subsidy amount exceeds this limit, the subsidy rate will be adjusted downward to ensure equitable distribution. Payments will be made quarterly, with REs required to submit verified claims to Raast Payments Pakistan (RPP).
The scheme will be open to all banks, microfinance banks, electronic money institutions (EMIs), payment system operators (PSOs), and payment service providers (PSPs) that offer Raast P2M QR acceptance services. Only successful transactions processed through the Raast system will be eligible for the subsidy.
SBP has emphasized the need for compliance with the prescribed process and maintaining records for verification and audit. REs are also required to reconcile any discrepancies in their claims within the given timeframe to ensure accurate subsidy payments.
This initiative is expected to significantly accelerate the adoption of digital payment systems in Pakistan, aligning with the government’s goal of fostering a cashless economy.
