In a groundbreaking move, Raqami Islamic Digital Bank (RIDB) and Euronet Pakistan Pvt. Ltd. have entered into an exclusive agreement aimed at promoting digital payments in Pakistan.
The journey began in January 2023 when RIDB secured a no objection certificate (“NOC”) from the State Bank of Pakistan (SBP) to establish the country’s first Islamic digital retail bank. Following this, in September 2023, the SBP granted In-Principal Approval (IPA) to RIDB and four other contenders for the digital bank license. The IPA set the stage for RIDB to focus on operational readiness, with plans for a pilot phase followed by the commercial launch as a digital retail bank.
Euronet Pakistan, a division of the NASDAQ-listed Euronet Worldwide (EEFT), renowned for secure electronic financial transactions, is set to play a pivotal role in this transformative partnership. The company brings a wealth of experience as the world’s largest global provider dedicated to banking and payment technologies.
Under the agreement, Euronet Pakistan will provide RIDB with a suite of services, including a Payment Switch, Card Management Solution, Credit Cards, ATM Controller, POS/E-Commerce Acquiring, Fraud Management Solution, and Card Tokenization.
Selecting a payment system is a strategic process for a bank, involving the careful selection and implementation of a technology platform that facilitates a wide range of financial transactions. RIDB aims to enhance operational efficiency, reduce costs, improve service availability, and ensure a seamless digital banking experience for its customers through Euronet’s advanced system.
Kashif Gaya, CEO of Euronet Pakistan, expressed excitement about being selected as Raqami’s technology partner. Gaya highlighted the company’s commitment to supporting RIDB through its next-generation digital platform, emphasizing scalability and agility for rapid product and service delivery.
Umair Aijaz, CEO of RIDB, emphasized the importance of a well-designed payment hub in the era of digitization. He stated, “As Raqami prepares to launch as Pakistan’s first Islamic digital retail bank, we are committed to playing our part in this evolution. This exclusive agreement between Raqami and Euronet is a key partnership that will help set the foundation for the country’s first Islamic digital bank.”
Nadeem Hussain, Coach RIDB, noted the positive impact of the SBP’s efforts to enhance the digital ecosystem in Pakistan, with digital transactions accounting for approximately 80% of total retail transactions. He expressed confidence that the partnership with Euronet would not only benefit both entities but also cater to the needs of an increasingly digital-savvy clientele.
RIDB, one of the five aspirants for the digital retail bank license, is poised to contribute significantly to the digitization drive led by the Government of Pakistan and the SBP. The collaboration with Euronet marks a strategic step toward achieving scale and meeting the evolving expectations of Pakistani customers in the digital era.
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