Pakistan’s digital banking sector is undergoing a rapid transformation, driven by a combination of policy reforms, technological advancements, and market-led innovation, according to Farhan Hassan, Chief Digital Officer at easypaisa.
Speaking at Money20/20 Asia in Bangkok during a panel discussion titled “How Digital Banks Can Thrive in the New Era?”, Hassan emphasized that Pakistan’s progress in financial inclusion has been gradual and multifaceted rather than driven by a single turning point.
He noted that the country’s financial inclusion rate rose from 47% in 2018 to 67% in 2025, supported by regulatory initiatives and digital innovation that expanded access to financial services across diverse population segments.
Highlighting the scale of digital adoption, Hassan revealed that 92% of retail payments in the second quarter of FY2025–26—equivalent to 3.1 billion transactions—were conducted ??? digital channels, including mobile banking apps, internet banking, ATMs, point-of-sale (POS) systems, and e-commerce platforms.
He described easypaisa digital bank as a key player in this transformation, noting that it recently became Pakistan’s first digital retail bank to commence full commercial operations. While the COVID-19 pandemic accelerated the shift toward digital financial services, he credited recent initiatives by the government and the State Bank of Pakistan for further advancing the country’s move toward a cashless economy.
Addressing the issue of customer trust, Hassan stressed the importance of balancing user convenience with robust security. He explained that excessive friction in digital platforms can deter users, while weak safeguards can expose them to risks. Sustainable trust, he said, lies in delivering seamless experiences supported by strong but often invisible security systems. In a digital-first environment, reliability effectively replaces the role of physical bank branches.
He also pointed out that digital banks are now competing not only with traditional financial institutions but also with Big Tech companies and embedded finance platforms. In response, easypaisa has transitioned from a closed ecosystem to an open platform model, enabling partnerships with e-commerce firms, telecom operators, and other stakeholders.
On the role of artificial intelligence, Hassan noted that AI-driven credit scoring and decision-making are already enhancing responsible lending while improving fraud detection and risk management. However, he cautioned that full reliance on AI for financial advisory still requires human oversight to ensure accuracy and contextual judgment.
He identified key challenges to broader AI adoption in Pakistan, including socio-economic disparities, limited digital literacy, and language barriers. Despite these hurdles, he expressed optimism that continued investment in infrastructure, education, and localized innovation will accelerate adoption in the near future.
With over 59 million registered users, easypaisa continues to align its strategy with the central bank’s vision of inclusive economic growth, focusing on expanding access to financial services for unbanked and underbanked populations.
Backed by Telenor Group and Ant Group—the company behind Alipay—easypaisa remains a major force in advancing Pakistan’s digital finance ecosystem.
