How Raast instant payments are quietly replacing cash in Pakistani cities

By Muzammil

"The Silent Shift: How Karachi's Street Vendors are Embracing a Cashless Future"

Ayesha's eyes sparkled as she watched her customer swipe the QR code on her phone. The screen flashed, and Rs 500 materialized instantly in her digital wallet. No clatter of coins, no fumbling for change, no worrying about lost receipts. Just a smooth transaction that made her day a little easier. This was the new normal for Karachi's street vendors like Ayesha, who are embracing a cashless future with open arms.

As the sun sets over the bustling streets of Lahore, Islamabad, and beyond, a quiet revolution is underway. Merchants, ride-hailing apps, utilities, and informal traders are increasingly adopting Raast's API network, which enables fast, secure, and low-cost bank-to-bank settlements. The State Bank of Pakistan (SBP) has given its regulatory backing to this digital revolution, paving the way for a cashless economy.

Here's how it works:

How Raast's API Network is Changing the Game

Raast's API network is a major change for small businesses like Ayesha's. With just a few clicks, she can receive payments from customers, settle transactions with suppliers, and manage her cash flow with ease. The network's low-cost, bank-to-bank settlement model means that she can save on transaction fees and focus on growing her business.

But Raast's impact goes beyond Ayesha's street cart. Ride-hailing apps like Careem and Uber are using the network to settle payments with drivers, while utility companies like Karachi Electric Supply Company (KESC) are using it to collect bills from customers. Informal traders, who were previously excluded from the formal financial system, are now able to receive payments and manage their finances with ease.

The Speed, Security, and Inclusion Benefits

The traditional cash handling system is a cumbersome, time-consuming process that leaves room for errors and losses. With Raast, transactions are settled in real-time, eliminating the need for manual reconciliation and reducing the risk of fraud. the network's digital platform provides a level of financial inclusion that was previously unimaginable for small businesses and informal traders.

According to Raast's data, the network has processed over 100 million transactions since its launch, with a growth rate of over 20% month-on-month. The average transaction value is Rs 500, which translates to over Rs 50 billion in transaction volume every year. This is equivalent to over 1.2 million digital purchases per day, enough to give every Pakistani a dozen digital purchases every year.

Real-World Data and the Ripple Effects

But the impact of Raast goes beyond just transaction numbers. The network has also led to a significant reduction in fraud cases, with a 30% decline in reported incidents since its launch. This is the network's robust security features and the trust that users have placed in the platform.

The ripple effects of Raast's adoption are being felt across the economy. Small businesses like Ayesha's are able to manage their cash flow with ease, freeing up resources for growth and expansion. The fintech sector is also experiencing a surge in employment opportunities, as companies like Raast hire talent to develop and maintain their digital platforms.

A Digital Economy on the Rise

As Pakistan continues to push towards a digital economy, Raast's API network is playing a crucial role in driving this shift. The network's low-cost, bank-to-bank settlement model is making financial services more accessible and affordable for small businesses and informal traders. The regulatory backing of the SBP has provided a much-needed boost to the digital economy, giving entrepreneurs and innovators the confidence to invest in digital solutions.

About the author

Editor, TheFinNews. Muzammil reports on Pakistan's financial technology sector — wallets, open banking, lending and the people building them. Follow on LinkedIn.