Raqami partners with Euronet Pakistan

Tuesday 16 January 2024 11:57 CET | News

Raqami Islamic Digital Bank (RIDB) has announced its partnership with Euronet Pakistan, aiming to promote digital payments in the region.

As a division of Euronet Worldwide, Euronet Pakistan processes secure electronic financial transactions, with its focus being on banking and payment technologies. As per the information detailed in the press release, Euronet Pakistan intends to provide Raqami Islamic Digital Bank with several services, including payment switch, card management, credit cards, ATM controller, POS/ecommerce acquiring, fraud management, and card tokenisation.

Raqami Islamic Digital Bank (RIDB) has announced its partnership with Euronet Pakistan, aiming to promote digital payments in the region.

Raqami – Euronet Pakistan collaboration objectives

Prior to the decision to partner with Euronet Pakistan, RIDB obtained a no objection certificate (NOC) from the State Bank of Pakistan (SBP) to establish an Islamic digital retail bank in the country in January 2023, and, later that year, the financial institution awarded in-Principal Approval (IPA) to Raqami and four other applicants for the digital bank licence. At that time, under the IPA, RIDB was in the process of developing its operational readiness for a pilot, followed by a commercial launch as a digital retail bank.

Acquiring a payment system represents a strategic process for a bank and it is intended to select and implement a technology platform that supports a range of payment services for its customers. Additionally, the system needs to cover a wide range of financial transactions, including fund transfers, bill payments, card processing, and acquiring, among others. RIDB’s objective is to develop a robust, integrated, scalable, and cloud-ready middleware platform. To achieve this, the bank leverages Euronet’s system for integration between payment systems, core banking systems, non-core applications, and digital channels. Through this collaboration, RIDB intends to increase operational efficiency, reduce costs, improve service availability, and ensure a simplified digital banking experience for its customers.

Representatives from Euronet Pakistan expressed their enthusiasm over being selected as Raqami’s technology partner for card issuance, fraud management, and transaction processing, as well as for participating in the launch of one of the first Islamic digital banks in Pakistan. The company focuses on supporting the bank via its locally hosted digital platform that allows scalability and agility while enabling the bank to focus on business value and offer additional card products and payment services. According to RIDB’s officials, considering the rapidly evolving digital economic sector, the bank is entering strategic collaborations to achieve scale while meeting the expectations of an increasingly digitalised customer base. The latest Quarterly Payment Systems Review Report shows that digital transactions accounted for approximately 80% of total retail transactions processed by banks, MFBs, and EMIs, while only 20% amounted for over-the-counter transactions. Moreover, the total number of ATMs exceeds 18,000 and POS machines increased to over 100,000. This demonstrates the country's increasing adoption of digital payments, with the partnership between RIDB and Euronet Pakistan supporting this development. 

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Keywords: digital banking, online banking, Islamic banking, retail banking, partnership
Categories: Banking & Fintech
Companies: Euronet Pakistan
Countries: Pakistan
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