Central bank extends lower merchant and interchange fees to promote digital payments and Raast QR adoption.
KARACHI: The State Bank of Pakistan (SBP) has capped payment card transaction charges at fuel stations until January 31, 2027, in a move aimed at encouraging digital payments and accelerating the adoption of the Raast QR payment system across Pakistan.
In a circular issued to the presidents and chief executive officers of all banks, microfinance banks (MFBs), electronic money institutions (EMIs), payment system operators (PSOs) and payment service providers (PSPs), the central bank said the revised pricing mechanism would take immediate effect.
Under the new instructions, the Merchant Discount Rate (MDR) for all card-present transactions conducted at fuel stations for the purchase of fuel and related products has been capped at Rs1.00 per litre.
The SBP has also capped the Interchange Reimbursement Fee (IRF) for such transactions at Rs0.20 per litre during the same period.
The central bank said the temporary pricing arrangement is intended to further facilitate digital payment acceptance at fuel stations while supporting the nationwide rollout of interoperable Raast QR-based payment acceptance.
The SBP directed all regulated entities to actively engage with fuel station operators to ensure that Raast QR payment facilities are deployed and made available for customers purchasing fuel and related products.
According to the circular, the central bank will review these arrangements on or around January 31, 2027, taking into account the market’s response to the revised pricing mechanism and the progress made in expanding digital payment acceptance.
The SBP clarified that the latest instructions become effective immediately, while all other directions contained in PSP&OD Circular Letter No. 01 of 2023 will remain unchanged.
The move is part of the central bank’s broader strategy to increase the use of digital payments, reduce reliance on cash transactions, and strengthen Pakistan’s digital financial ecosystem through wider adoption of the Raast instant payment system.