In 2020, Pakistan’s fintech landscape experienced a pivotal transformation, driven by urgent pandemic-induced needs and bolstered by policy innovation. The convergence of digital wallets, mobile payments, and government support not only boosted financial inclusion but also catalyzed a new wave of financial technology startups.

COVID-19 highlighted the critical need for contactless transactions. The State Bank of Pakistan (SBP) responded by waiving digital payment charges and promoting branchless banking. According to the SBP’s Annual Payment Systems Review 2020, digital financial transactions rose by 22%, with mobile banking users increasing to over 9 million by the end of the year.

Fintech companies like Easypaisa, JazzCash, and fintech startup SadaPay gained rapid momentum. Easypaisa reported a 35% increase in transactions during the lockdown period, while JazzCash expanded its merchant network to support SMEs shifting to digital commerce. Meanwhile, SadaPay—still in beta mode in 2020—received in-principle approval from the SBP to launch its neobank, promising zero-fee mobile banking with a modern user interface targeting millennials and freelancers.

The launch of Raast, Pakistan’s first instant payment system by SBP and Karandaaz Pakistan, was another milestone. Designed to enable real-time person-to-person and merchant payments, Raast aimed to create a low-cost digital infrastructure that would reach the underbanked and unbanked segments of the population.

International support also played a role. The World Bank and Bill & Melinda Gates Foundation supported Pakistan’s efforts to digitize its financial services. Their backing of initiatives like the Ehsaas Emergency Cash Program showcased how fintech could be leveraged for public sector service delivery.

Challenges remained. According to the Pakistan Fintech Network, only 21% of women in Pakistan had access to financial accounts in 2020. Moreover, rural populations continued to face barriers related to literacy, smartphone access, and digital trust. Fintech adoption was uneven, skewed toward urban centers and younger populations.

Despite these hurdles, 2020 marked the beginning of a fintech revolution. With forward-thinking regulatory support, increasing investor interest, and a rising number of startups targeting both consumers and merchants, Pakistan set the stage for becoming a regional fintech hub.

References:

[1] State Bank of Pakistan Payment Systems Review 2020 – https://www.sbp.org.pk

[2] Easypaisa Usage Stats 2020 – https://www.easypaisa.com.pk

[3] JazzCash Growth Data 2020 – https://www.jazzcash.com.pk

[4] SadaPay Official Site – https://www.sadapay.pk

[5] Karandaaz Pakistan and Raast Overview – https://www.karandaaz.com.pk