Muhammad Saleem

Digital wallets are changing the game for small businesses in Pakistan, enabling fast payments with a simple setup. Strong support from both private companies and the government has the potential to transform the country’s business landscape.Muhammad Abid, a wholesale garments store owner, shared with WealthPk how digital wallets had boosted his sales and positively impacted his business. “Since I began receiving payments digitally, my sales have increased and things are improving a lot with every passing day.

In the past, I only accepted cash, and scores of my customers had to leave without buying anything if they did not have cash in hand,” he said. “However, now I’ve added QR code payment options using JazzCash and Easypaisa. My customers can shop easily without worrying about carrying cash. I’m seeing noticeable sales daily,” he said. It used to be a cumbersome task to maintain the cash register before closing the shop. But, with the help of digital wallets, I now easily check the entire day’s sales, he added.

Talking about the challenges shopkeepers and traders face when dealing with digital wallets, Abid said, “In the beginning, I was confused. I did not know how to set up or use the app, and that made me nervous. But my thanks go to online tutorials and the company team that visited my shop and explained the features in detail. Their guidance made it easy for me to learn every feature of the app.” He said that some customers still did not fully trust digital payments, but things were changing gradually.

“Now, even older people ask if I accept mobile payments.” Digital wallets are becoming a powerful tool, as his customers from other districts can now easily transfer payments to his wallet, Abid said. Earlier, they had to visit the customers to collect payments, or the customers would pay at the shop during their next visit to buy new products, he said. “This is an era of digitalization, and we need to promote contactless payments for small businesses. They’re not just a trend—they’re the future.

The government should encourage more small businesses to go digital in order to build a smarter, safer, and stronger economy,” he suggested. Muhammad Idrees, a retired teacher from a state-run commerce college, told WealthPk that smartphone usage was rising each passing day, and people–particularly the younger generation—need quick and cash-free transaction options. “To broaden our tax net and strengthen the economy, we must shift to digital mods and payment systems,” he said. He pointed out that countless people run multiple businesses, and the majority are not part of the tax net.

“With the help of digital wallets, we can bring such people under the tax system and reduce the circulation of physical cash,” he said. Digital wallets, he added, offer a fast, easy, and safe way to make payments for shopping and trade. Companies have launched user-friendly apps that even small shopkeepers can use without any expensive machines. Only a normal mobile phone and internet connection are enough to receive payments, and the same goes for customers.

Due to the immediate benefits, people in urban areas are rapidly adopting digital wallets, he noted. “The government must promote the use of digital wallets and offer incentives, especially to rural communities, so they can start using this facility,” he suggested. He said that sensing the potential of the digital economy, companies are regularly updating their apps to protect wallet holders from scams.

It has also been observed that companies are bringing more small shops and vendors into the digital economy. These companies have simplified the sign-up process and are offering incentives to attract new users. With just a phone and a national ID card, people can now access digital wallets and even qualify for small loans or credit, he added.

Credit: INP-WealthPk