Raqami Islamic Digital Bank (RIDB) and Euronet Pakistan join hands to advance digital payments in Pakistan
Raqami Islamic Digital Bank (RIDB) and Euronet Pakistan have
joined forces in an exclusive partnership to advance digital payments in
Pakistan. The collaboration follows RIDB's receipt of a no objection
certificate ("NOC") from the State Bank of Pakistan (SBP) in January
2023 to establish the country's first Islamic digital retail bank.
In September 2023, SBP granted In-Principal Approval (IPA)
to RIDB and four other candidates for the digital bank license. Currently, RIDB
is in the process of developing operational readiness for a pilot, followed by
a commercial launch as a digital retail bank.
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Euronet Pakistan, a division of Euronet Worldwide, a
NASDAQ-listed company, and a prominent player in secure electronic financial
transactions, will provide various services to RIDB. These services include
Payment Switch, Card Management Solution, Credit Cards, ATM Controller,
POS/E-Commerce Acquiring, Fraud Management Solution, and Card Tokenization.
The strategic selection of Euronet's technology platform by
RIDB aims to facilitate a range of payment services, such as fund transfers,
bill payments, card processing, acquiring, and more. Leveraging Euronet's
system for integration between payment systems, core banking systems, non-core
applications, and digital channels, RIDB aims to enhance operational
efficiency, reduce costs, improve service availability, and ensure a seamless
digital banking experience for its customers.
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Kashif Gaya, CEO of Euronet Pakistan, expressed excitement
about being chosen as Raqami's technology partner and emphasized the role they
will play in launching Pakistan's first Islamic Digital Bank. Umair Aijaz, CEO
of RIDB, highlighted the significance of the partnership in laying the
foundation for the country's first Islamic digital bank, aligning with the
evolving digital ecosystem.
Nadeem Hussain, Coach RIDB, underscored the government's
efforts to promote digital financial services in Pakistan, citing progress in
digital transactions and the increasing number of ATMs and POS machines. He
emphasized the confidence that the partnership with Euronet will benefit both
entities and cater to the expectations of a digital-savvy clientele.
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RIDB is one of five candidates for the digital retail bank
license under the Licensing and Regulatory Framework for Digital Banks 2022, to
be awarded by the State Bank of Pakistan. The licenses will be granted after
successful pilot implementation and operational readiness by the applicants.
Source: Pro Pakistani