Scaling merchant payments on RAAST: a responsible pricing blueprint for Pakistan

Pakistan still transacts largely in cash, slowing small-business growth and adding friction across the economy. This report presents a responsible pricing blueprint to scale RAAST person-to-merchant (P2M) payments—keeping acceptance affordable for small businesses and viable for providers, while supporting national policy goals. The approach combines cost-based pricing, early-stage incentives, and 24/7 recourse, with a proposal to establish a National Merchant Payments Working Group to coordinate data-driven reviews, financial literacy initiatives, and merchant education.

© BTCA

Who is this for?

Policymakers A data-driven path to expand acceptance—using pricing as a public-policy lever while protecting competition, reliability, and inclusion.

Providers (Banks, PSPs, fintechs, aggregators) A predictable pricing reference that supports unit economics and unlocks investment in outreach, reliability, and innovation.

Merchants (especially micro and women-led) Predictable, low acceptance costs, instant confirmations, and always-on recourse—so digital feels as easy and trustworthy as cash, but better.

Overview of Policy Recommendations

© RAAST 1

© RAAST 1

RAAST by the numbers

Merchant Discount Rate (MDR) floor: 0.35% (most sectors); zero issuer interchange, zero scheme fees

USD66.67 sale (PKR 20,000): Merchant ≈ USD0.23 (PKR 70; 0.35%); acquirer direct cost ≈ 0.10%

Efficiency: meaningfully lower provider costs vs. alternatives; simpler, predictable acceptance for merchants

On-ramp: time-bound zero-fee micro-tier to drive habit

What this means

Policymakers A calibrated pricing floor avoids a race to zero, keeps acceptance affordable, and supports market health—aligned with national inclusion and payments strategies.

Providers A stable MDR reference anchors unit economics and supports investment in reliability, risk controls, confirmations, and new services (e.g., analytics, embedded credit).

Merchants Low, predictable costs; fast confirmations; and 24/7 recourse build confidence—making digital practical for everyday business.