Amir Saeed

With the rise of e-commerce, online marketplaces and digital services, the need for efficient payment systems has become more critical than ever. Talking to WealthPK, Haroon Sharif, former chairman of the Board of Investment, said that traditional payment methods, such as cash and cheques, are no longer sufficient for online transactions. “Modern payment systems must be able to process transactions in real time, handle multiple payment methods, and ensure the security of sensitive financial information.” “Security is a critical aspect of efficient payment systems. With the rise of cybercrime and data breaches, businesses must ensure that their payment systems are secure and compliant with industry standards,’’ he stressed. One of the key features of an efficient payment system is its ability to process transactions quickly and accurately, he said, adding that this can be achieved through advanced technology and robust infrastructure, enabling businesses to receive payments in real time.

In addition, he said efficient payment systems reduce the risk of fraud and chargebacks, protecting businesses from financial losses and reputational damage. Haroon said that one of the main hurdles hindering the growth of online businesses in the country is the lack of trust by consumers in the products and payment methods. “The trust deficit is a significant obstacle that needs to be addressed to unlock the full potential of Pakistan’s online market.” He said consumers are hesitant to share their personal and financial information online due to concerns about data privacy and security. “This skepticism is rooted in the country’s history of fraud and cybercrime, which has made consumers wary of online transactions. The lack of robust consumer protection laws and regulations has further eroded trust in online businesses,” he explained. Zeeshan Riaz, Chief Operating Officer of Urtasker, an e-commerce consulting agency, told WealthPK that most Pakistanis prefer cash-on-delivery to online payments, depicting a lack of trust in digital payment systems.

“The preference for cash-on-delivery limits the growth of online businesses in expanding their customer base beyond major cities.” He pointed out that the absence of a fast and reliable payment reversal system in case of scams and fraud makes consumers wary of trusting online payment systems. “To build trust, online businesses must prioritise transparency, security, and customer satisfaction. They must invest in payment gateways, implement stringent data protection policies, and ensure timely refunds and resolutions.” Zeeshan said that the government and regulatory bodies have a crucial role to play in building trust in the online market. “They must legislate and enforce robust consumer protection laws, ensure data privacy, and promote awareness about online safety and security.”

Credit: INP-WealthPk