Pakistan’s Digital Payment Index(DPI) Coming Soon
Pakistan will introduce the DPI which tracks how the country uses the Digital Payment Index system. The index, therefore, measures how real and widespread the adoption of digital payments has been across various sectors and in which areas the state should improve. It improves the digital payment infrastructure.
DPI-What does Digital Payment Index stand for?
The Digital Payments Index will be a tool to measure the effectiveness of digital payments across Pakistan based on the number of users, system performance and people’s awareness of payment options.This will allow the government and other institutions to determine which areas are in dire need of improvement and how to make digital payments more accessible to people.
Why does India need a digital payment system?
Many countries in the world have developed their own indexes that track payments made through digital means. This is the case of the Mastercard Digital Payments Index with payment trends in Hungary, Romania and Greece.
Pakistan’s DPI will focus on such key areas.
Availability of bank / mobile accounts use of the card.
The availability of instant payments
Availability of QR codes.
Availability of contactless payments.
The availability of mobile payment services
Keeping these areas in mind, the DPI will now present an accurate picture of the use of digital payments in Pakistan. It will also touch upon areas that need improvement, such as the availability of mobile payments and awareness of cashless payment method.
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Objectives of Digital Payment Index
The DPI will aim towards the following objectives: Tracking the growth of digital payments: This is a clear way in which the DPI shows how digital payments are being adopted across the country.
To offer useful insights: It will provide valuable information to businesses and government officials. To help them make better decisions about digital payments. It will track payment and spending trends: The index will identify how often people use digital payments and how much they are spending through digital channels. This will make the user experience even better: Understanding how easy, secure and accessible digital payments are, DPI will help streamline the payment process for customers. Create Performance Targets: DPI will set benchmarks to measure the success in various sectors and areas of the digital payment system.
Compare Pakistan’s progress with all other countries: The index will enable Pakistan to compare its digital payment growth with that of all other countries and identify areas for improvement and implementation of best practices.
Pakistan’s Digital Payment Index(DPI) Coming Soon
The new initiative will be developed by Carandaz Pakistan in collaboration with the State Bank of Pakistan (SBP). The two organisations have thus collaborated in the past to launch the RAAST payment system, which offers easy and affordable instant digital payments.
It will collect data that ultimately helped in the development of the index, in essence collating information collected across the country to present a holistic picture regarding the use of digital payments. The index will be updated from time to time with data coming from SBP and other sources with the aim that it continues to reflect recent trends in the use of digital payments.
The launch of Pakistan’s Digital Payment Index (DPI) will soon benefit Pakistan’s economy. This will help policymakers, banks and businesses to make smart, data-driven decisions related to digital payments. With a detailed identification of areas that require improvement and tracking changes over time, DPI will play an important role in transforming Pakistan’s financial system.
DPI will help build a stronger and more inclusive digital economy, making it easier for people across the country to use digital payments. This will help Pakistan remain competitive with other countries in the long run and ensure that everyone will have to share the benefits of digital payments.