Pakistan has shifted to digital money faster than almost anyone expected. By the State Bank's own figures, the large majority of retail transactions are now digital rather than cash — driven by instant bank transfers, mobile wallets and QR codes that did not exist for most people a few years ago. If you are still paying for everything in cash, you are paying more in time and fees than you need to. This guide explains the main ways to pay digitally in Pakistan, what each is best for, and what they cost.
Raast: the free instant-payment backbone
Raast is the State Bank of Pakistan's instant payment system, and it is the single most important thing to understand. It moves money between bank accounts and wallets in real time, around the clock, and person-to-person transfers are free. Instead of typing a long IBAN, you can register a Raast ID — usually your mobile number — and receive money to it directly. Most bank apps and wallets have a "Raast" option built in.
For shops, Raast also powers QR-code payments (the "person-to-merchant" service). You scan the merchant's QR in your banking app, confirm the amount, enter your PIN, and the money moves account-to-account instantly. Under the current scheme there is no merchant fee on these QR payments, which is why more small businesses are starting to accept them. For everyday transfers to family, friends or sellers, Raast is almost always the cheapest option — start there.
Mobile wallets: JazzCash and Easypaisa
JazzCash (Mobilink Microfinance Bank) and Easypaisa (Telenor Microfinance Bank) are the country's largest mobile wallets. They work through a smartphone app and also through simple USSD codes on basic phones, backed by a huge network of physical agents where you can deposit or withdraw cash. That agent reach is their great strength — it bridges people who do not have a traditional bank account.
Wallet-to-wallet transfers and a monthly allowance of free interbank transfers are typically free, and paying bills or buying mobile top-ups inside the app is cheap or free. The costs to watch are the physical ones: withdrawing paper cash through an agent or an ATM carries a fee that rises with the amount. Both also offer extras such as debit cards and small "ready cash" loans. Use them for their convenience and agent network, but move larger sums by Raast or interbank transfer to avoid cash-out charges.
App-only wallets: SadaPay and NayaPay
SadaPay and NayaPay are a newer kind of provider, licensed as Electronic Money Institutions (EMIs). They have no agents and no branches — everything happens in the app — which lets them keep fees very low. Opening an account is free, a virtual card (Mastercard on SadaPay, Visa on NayaPay) is issued free inside the app, and local transfers are generally free. The trade-off is that, by their licence, EMIs cannot lend money or pay you profit on your balance; they earn mainly from international card spending and premium business features. They suit freelancers and younger, tech-first users who want a clean app and a card for online and overseas payments.
| Type | Examples | Best for | Cash via agents? |
|---|---|---|---|
| Instant payment rail | Raast (in your bank app) | Free transfers, QR payments | No — account-to-account |
| Branchless wallet | JazzCash, Easypaisa | Cash in/out, bills, the unbanked | Yes (fees apply) |
| App-only wallet (EMI) | SadaPay, NayaPay | Free cards, online & overseas spend | No |
A safety rule worth knowing
To fight fraud, money transferred into a branchless wallet can be held for about two hours before it can be withdrawn as cash or moved on. This "cooling period" gives victims of a scam a window to report it and freeze the funds. It is a protection, not a fault — but it is worth knowing if you are expecting to cash out immediately. Transfers between ordinary bank accounts are not subject to this particular hold.
Paying bills digitally
Almost every bank app and wallet can pay utility, telecom and many government bills through a shared system called 1Bill. You choose "1Bill" as the biller, enter your consumer reference number, and the app instantly pulls up the amount due and the due date before you confirm. Most providers waive the fee on utility bill payments, so there is little reason to queue at a payment centre. The underlying interbank switch, 1LINK, is also what makes ATM withdrawals and transfers between different banks work.
Cards: debit, credit and PayPak
Debit cards are by far the most common card in Pakistan, though many people still use them mainly to pull cash from ATMs rather than to pay directly. Alongside Visa and Mastercard, Pakistan has its own domestic card scheme, PayPak, which processes payments locally and is therefore cheaper for banks to issue — handy for everyday domestic use. Its old limitation was that it did not work for international or online-global payments. That is now being solved through "co-badged" cards (for example PayPak with UnionPay or Mastercard): inside Pakistan they run on the low-cost domestic network, and abroad or for global e-commerce they switch to the international partner. If you shop online from foreign sites, look for a co-badged card or an EMI virtual card. For how card and loan pricing is set more broadly, see our guide to interest rates in Pakistan.
Choosing a card for online shopping
A standard PayPak card works only inside Pakistan. For foreign sites, a co-badged PayPak card or an EMI virtual card (SadaPay, NayaPay) is the practical choice.
Which should you use?
For most people the answer is a combination: use Raast for free transfers and QR payments, keep a JazzCash or Easypaisa wallet if you need cash through agents, and add a SadaPay or NayaPay card if you spend online or abroad. Whatever you choose, the principle is the same as with any financial product — know the fees before you rely on it, and prefer the free rail (Raast) for moving money. To compare the banks behind these services, see our Pakistani banks guide, and before borrowing through any app, check your record with our guide to your credit score.
Tip: Keep a free virtual card for online payments and your main account separate.