How Easypaisa is driving Pakistan’s digital banking revolution

Irfan Wahab Khan, chairman of Easypaisa Digital Bank’s board, described the launch of Pakistan’s first digital retail bank as a milestone that will reshape the nation’s financial ecosystem.

Speaking on a podcast with Kamran Khan, he credited the State Bank of Pakistan (SBP) for its progressive vision, which led to Easypaisa securing the country’s first digital retail banking license.

According to Khan, traditional banks face challenges in expanding their physical presence in rural areas. However, with nearly every Pakistani owning a mobile phone, Easypaisa aims to bridge the financial gap through mobile banking.

He recalled the initial skepticism around digital transactions, particularly in over-the-counter services, but said the company’s awareness campaigns helped establish trust in mobile money transfers.

“Our vision was to turn mobile phones into financial tools,” he said, highlighting Easypaisa’s journey in making digital transactions mainstream.

Driving tech expansion

Khan detailed Easypaisa’s financial journey, beginning with funding from Telenor, which later led to full ownership of a microfinance bank. With a vast distribution network of 200,000 retailers, Easypaisa sought a strategic technology partner, leading to a joint venture with Ant Group, the financial arm of Alibaba.

“Ant Group brings global expertise in fintech, and together, we have positioned Easypaisa as a leader in digital financial services,” Khan said. Under the partnership, Telenor holds a 55% majority share, while Ant Group owns 45%.

50 million customers, trillions in transactions

Easypaisa has become a dominant player in Pakistan’s financial sector, handling nearly 5 million transactions daily. With 50 million customers, the platform has facilitated 4 billion bill payments in 2024 alone.

“In 2024, Easypaisa processed transactions worth PKR 9.4 trillion, amounting to 9% of Pakistan’s GDP,” Khan said. The platform also offers salary disbursement solutions for SMEs and security firms, ensuring seamless payments for employees, including those in remote areas. Additionally, Easypaisa is now Pakistan’s largest distributor of mutual funds.

Expanding cash deposit options

Khan emphasized that digital banks must offer easy cash deposit options. Easypaisa customers can deposit money via IBFT, Raast, retailers, or ATMs. In 2024, the bank digitized PKR 850 billion, reflecting customers’ growing preference for digital money storage.

“Transfers from bank accounts to Easypaisa via IBFT or Raast are completely free,” he said, encouraging more users to embrace digital banking.

India’s UPI: A model for Pakistan?

Khan highlighted India’s Unified Payments Interface (UPI) as a global benchmark in digital transactions. India now leads the world in instant digital payments, with 70-80% of transactions being cashless.

“Pakistan was ahead with NADRA’s digital infrastructure, but we failed to leverage it for fintech innovation,” Khan noted. He stressed that security restrictions have limited NADRA’s role, whereas India’s open API framework enabled fintech startups to thrive.

Pakistan’s reluctance to digitize stems from tax-related concerns, he said. Many individuals hesitate to conduct online transactions due to fear of scrutiny.

“India’s demonetization, though controversial, accelerated its digital transition,” Khan said, adding that political will and regulatory support could help Pakistan achieve similar results.

Competing with global tech giants

Khan pointed to China’s DeepSeek, a relatively small company, competing with industry giants like Nvidia and AMD in artificial intelligence.

He argued that Pakistan could nurture similar success stories if it embraced bold thinking and innovation.

“We don’t need policies or regulations for this—just confidence and a vision for the future,” he said.

Telenor’s Khushhal Zamindar: Empowering farmers through technology

Telenor’s Khushhal Zamindar initiative, launched to enhance agricultural productivity, now supports 15 million farmers. The platform provides market insights, weather forecasts, and expert advice in local languages via IVR technology.

“Farmers can check real-time prices, find affordable fertilizers, and receive crop recommendations tailored to their region,” Khan explained. He emphasized that digital platforms can revolutionize rural economies by reducing dependency on traditional middlemen.

Khushhal Zamindar has also facilitated paperless microloans, issuing 65,000 loans daily. In 2024, Easypaisa disbursed over PKR 60 billion in agricultural loans.

Easypaisa’s digital expansion: International remittances and savings plans

Easypaisa has expanded into international remittances, leveraging blockchain technology for faster transactions. A pilot project between Pakistan and Malaysia demonstrated the potential for seamless, 24/7 money transfers with no hidden fees.

“Previously, we couldn’t offer direct international remittances, but our digital banking license has changed that,” Khan said. Easypaisa also introduced global payment options, allowing customers to use their wallets at 107,000 international retailers linked with Alipay Plus.

Moreover, Easypaisa now offers customizable savings plans, letting users deposit as little as PKR 100 for flexible durations. The platform aims to enter the insurance market, providing short-term travel coverage and other digital-first products.

SBP’s role

Khan underscored the rigorous approval process by the SBP, which reviewed over two dozen applicants before issuing five digital banking licenses.

“Easypaisa was the only operational platform among the approved banks,” he said. “The others are still establishing themselves.”

The central bank evaluated cybersecurity, technology infrastructure, and business models before granting licenses. Khan believes the approval signifies regulatory confidence in Easypaisa’s ability to lead Pakistan’s digital banking revolution.

Looking ahead: A digital-first future

With Easypaisa at the forefront of Pakistan’s fintech evolution, Khan envisions a cashless economy driven by mobile banking and digital payments. He stressed that Pakistan must embrace innovation, regulatory flexibility, and political commitment to replicate global success stories in digital finance.

“The world is moving toward digital economies, and Pakistan has the potential to be a major player,” he concluded.