CDC, EClear expand Raast payment services for Pakistan's stock market

Central Depository Company of Pakistan (CDC) and EClear Services Limited are expanding their collaboration to introduce new digital payment and investor verification services in Pakistan's capital market through the State Bank of Pakistan's Raast payment system.

The initiative will introduce Raast Person-to-Merchant (P2M) payments and IBAN-CNIC Validation services under CDC's Raast Aggregator framework, according to an announcement issued Monday.

EClear is set to become the first institution in Pakistan's stock market to adopt Raast's Request to Pay Later (RTPL) and dynamic QR code services, allowing brokers to manage and collect payments more efficiently.

How will the new Raast services help stockbrokers?

The services will allow participating brokers to send payment requests and collect funds through digital channels, reducing reliance on manual payment processes. Dynamic QR codes will offer another way to initiate payments, while IBAN-CNIC Validation will provide an additional investor verification service. The collaboration could also help automate debit and margin calls.

One potential application is the automation of debit and margin calls for brokers connected to EClear.

Margin calls occur when investors are required to provide additional funds to maintain their trading positions. Automating these requests could help brokers collect payments and reduce manual processing.

Raast's Request to Pay Later service allows participating entities to issue payment requests that customers can act on later.

Dynamic QR codes provide payment details for individual transactions, offering an alternative to conventional payment collection methods.

The collaboration also includes Raast-based IBAN-CNIC Validation, a service intended to support investor verification.

CDC expands digital payment services

CDC has already introduced Raast Person-to-Person (P2P) transfers and static QR code services, enabling customers of capital market institutions to transfer funds for trading, investment and other purposes.

The company said it is now extending Raast P2M and IBAN-CNIC Validation services to Pakistan's capital market for the first time.

CDC Chief Executive Officer Badiuddin Akber said the company was the first capital market institution to connect with the SBP's Raast system, implementing bulk payments for its electronic dividend initiative in 2021.

Since then, CDC has expanded Raast services for mutual fund companies, stockbrokers and insurance companies.

Akber said the expanded collaboration with EClear would further support digital innovation and operational efficiency across Pakistan's capital market.

The initiative is intended to improve payment collection, reduce manual intervention and make financial transactions more convenient for investors.

Through its Raast Aggregator framework, CDC aims to make additional digital payment and verification services available to participating capital market institutions.