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Money Matters

As money evolves

By Irfan Wahab Khan
17 March, 2025

Connectivity has long been a transformative force, reshaping economies and societies across the globe. The digital revolution has fundamentally altered economic landscapes, breaking down traditional barriers and enabling unprecedented financial inclusion.

As money evolves

Connectivity has long been a transformative force, reshaping economies and societies across the globe. The digital revolution has fundamentally altered economic landscapes, breaking down traditional barriers and enabling unprecedented financial inclusion.

Pakistan’s entry into the elite club of 400 digital banks worldwide, marked by the launch of Easypaisa Digital Bank, signifies a major milestone in the nation’s financial evolution. This transformation has the potential to drive economic growth by addressing key challenges in financial literacy, accessibility, and inclusion.

The digitisation of finance has already revolutionised economies worldwide. The global digital banking market is expected to grow from $803 billion in 2023 to $1.6 trillion by 2030, reflecting its rapid adoption. Pakistan, as a developing economy, stands to benefit significantly from this shift, bridging financial gaps and ensuring ease of access to banking services.

Despite global players like PayPal remaining hesitant to enter the Pakistani market, Easypaisa is taking bold steps forward by integrating Alipay+, enabling seamless cross-border transactions across 160 countries. This integration not only enhances international financial connectivity but also provides Pakistanis with greater economic opportunities.

The synergy between Telenor, one of the world’s largest telecom operators, and Ant Group, a global fintech leader, has created unparalleled opportunities in Pakistan. While Scandinavian customers spend around 60 euros per month on telecom services, Pakistan’s average spend is one euro, highlighting significant income disparities. Similarly, transaction values in Pakistan are much lower than those in advanced markets due to GDP per capita differentials. However, Easypaisa has turned this challenge into an advantage by offering financial services with minimal entry barriers, making banking more accessible to underserved populations.

With over 100 million unbanked adults (53 per cent of the adult population), Pakistan has the third-largest unbanked population globally. The gender disparity in financial inclusion is stark, with only 13 per cent of Pakistani women having bank accounts, ranking Pakistan as the fourth lowest in female financial inclusion worldwide. Easypaisa’s digital banking model addresses this challenge by enabling microtransactions, a strategy successfully employed in Pakistan’s FMCG sector, where sachet packaging made everyday products accessible to lower-income groups.

Pakistan remains predominantly cash-based, which carries significant hidden costs. The government spends billions annually on printing and maintaining physical currency. The informal economy, where cash circulation reached Rs9.4 trillion as of June 2024, continues to hinder financial transparency and tax collection. However, with five million transactions daily and a Rs9.4 trillion transaction volume in 2024, Easypaisa is driving the shift towards a digital economy.

Despite global players like PayPal remaining hesitant to enter the Pakistani market, Easypaisa is taking bold steps forward by integrating Alipay+, enabling seamless cross-border transactions across 160 countries

Artificial intelligence (AI) and blockchain are playing crucial roles in transforming financial services. In emerging markets like Pakistan, AI-powered solutions enhance financial inclusion by offering innovative insurance, savings products, and real-time financial literacy tools. Traditional banking giants face disruption from digital platforms like Alipay, which have demonstrated the power of AI in democratizing financial access.

Easypaisa is leveraging next-generation financial infrastructure, including smart ledgers and blockchain-based remittance solutions, to streamline international transactions for millions of overseas Pakistanis. A pioneering initiative includes using RFID-enabled cattle tracking as collateral for agricultural loans, revolutionizing access to credit for farmers and reducing risk for lenders.

Despite rapid advancements, challenges remain. To fully unlock the potential of digital banking, policy frameworks must support digital literacy, reduce barriers to technology adoption, and incentivise financial participation. Pakistan ranks 10th globally in smartphone penetration, with over 50 per cent adoption, and by mid-2025, its population will reach 255 million, with 63 per cent under 30 years old. This young, tech-savvy generation presents both challenges and immense opportunities for digital financial growth.

Since its inception in 2009, Easypaisa has evolved to meet market demands, pivoting from over-the-counter transactions to full-fledged digital banking. The 2018 partnership with Ant Group has provided access to one of the world’s largest fintech ecosystems, leveraging expertise from China, India, Thailand, and the Philippines. While digital banking in Pakistan is still in its early stages, with four more entrants set to join the sector, industry-wide collaboration is essential to drive financial inclusion at scale.

The digital banking revolution is not just about financial transactions; it is about empowering individuals, fostering entrepreneurship, and integrating millions into the formal economy. Easypaisa’s commitment to innovation, accessibility, and financial inclusion reflects a broader vision of economic upliftment.

Every new digital account represents not just a customer, but a potential entrepreneur, investor, or active participant in Pakistan’s formal economy. As Pakistan navigates its way to becoming a top six global economy by 2075, digital banking will be at the heart of this transformation.

However, achieving this vision requires collective efforts from industry leaders, policymakers, and financial institutions to create an inclusive, tech-driven financial ecosystem for all Pakistanis.


The writer is the chairman of the board of Easypaisa Digital Bank. He tweets/posts @irfanwahabkhan