KARACHI: State Bank of Pakistan has launched a much-awaited Raast Person to Merchant (P2M) service, an interoperable channel to facilitate digital payment acceptance for merchants and businesses.
The P2M service will enable Payment acceptance by businesses using Quick Response (QR) Codes, Raast Alias, IBAN, and Request to Pay (RTP). The new system will also enable customers to initiate the request for returns/refunds through the Raast provided option.
The system will also enable push payments to merchant Raast Aliases and IBANs and process Request to Pay (Now/Later) transactions initiated by merchants or third parties. The new P2M service is set to accelerate the pace of digitization of merchant and business transactions in Pakistan through banks, MFBs, EMIs, PSOs & PSPs operators.
Accordingly, it has been decided that all Regulated Entities (Res) shall be enabled for processing P2M transactions via their delivery channels including mobile apps, internet banking portals, and USSD channels (where applicable) by 1st March 2024. To ensure maximum adoption of digital payment services through Raast P2M Service, all REs have been asked to design efficient, seamless, and easy-to-use customer interfaces and not charge any fee from their customers paying for their transactions.
The REs will not restrict the number and amount of transactions performed by their customers unless there are genuine fraud/cyber security/AML-related concerns. REs will provide instant transaction confirmation or rejection notification to customers and will also ensure that account statements available for customers on digital channels (apps/internet portals) are updated in real-time.
Raast Merchant Service Providers (MSPs) will ensure onboard businesses including but not limited to merchants, aggregators, marketplaces, and billers, after conducting due diligence in line with the relevant laws and regulations and deploying QR codes in line with specifications or instructions issued by SBP.
These entities will ensure that merchants receive payment confirmation/rejection advice immediately after receiving such advice from Raast. Further, they shall provide real-time payment confirmation.
Further, the MSPs may also charge a reasonable fee from merchants for the services provided; however, they are encouraged to waive such charges to promote merchant adoption initially. MSP may enter into agreements with third parties offering billing/invoicing services over Raast merchant service.
Further, MSPs may embed Raast merchant services for checkout purposes into their partner apps. However, they will have to comply with all relevant SBP regulations as issued from time to time.
They can also agree with other REs to offer specialized services/packages/discounts/loyalty programs aimed at accelerating the adoption of Raast merchant services. The SBP has also asked MSPs to enable necessary integrations with Raast P2M and enable Raast payment acceptance via P2M at their respective merchant locations and e-commerce checkouts.
Other REs desirous of becoming Raast Merchant Service Providers (MSP) will inform SBP’s Digital Innovation & Settlements Department (DI&SD) and complete the necessary technical requirements for integrating with Raast. The SBP has said that all REs shall ensure that billers/bill-aggregators already onboarded by them are also enabled to accept payments via Raast RTP by March 31, 2024.
All REs including MSPs shall take necessary measures to create awareness about Raast Merchant Services and promote its adoption. This may include designing and launching media and on-ground campaigns, promotional activities, and strategic alliances All REs including MSPs shall take necessary measures to create awareness about Raast Merchant Services and promote its adoption.
This may include designing and launching media and on-ground campaigns, promotional activities, and strategic alliances.
The SBP has warned that non-compliance with the Raast-related instructions shall attract punitive action under the relevant provisions of the Payment Systems and Electronic Fund Transfer Act, 2007. REs will be instructed to devise comprehensive dispute resolution, liability, and risk management frameworks for on-boarded merchants as well as for third parties.
REs will take all possible steps to prevent the loss of customer data and funds due to cybersecurity threats. In this regard, special care must be taken to safeguard the systems and devices at the merchant end as per international best practices.
These will ensure all necessary steps for preventing fraud and misuse of Raast P2M Service in line with relevant instructions issued by SBP from time to time. REs will ensure that customers are not charged any fee on their purchases, by merchants or third parties.
REs, including banks, MFBs, EMIs, PSOs & PSPs operators shall submit the status of compliance with this circular duly signed by the Chief Operating Officer (COO) and Chief Compliance Officer (CCO) to this department on or before 1st April 2024.