RIDB, Euronet ink deal

KARACHI: Raqami Islamic Digital Bank (RIDB) and Euronet Pakistan Pvt. Ltd. have entered into an exclusive agreement to promote digital payments in the country, a statement said on Monday.

RIDB, which aims to become Pakistan's first Islamic digital retail bank, received a no objection certificate from the State Bank of Pakistan (SBP) in January 2023 and an in-principle approval for the digital bank license in September 2023, along with four other aspirants.

The bank is developing its operational readiness for pilot, followed by commercial launch, the statement added. Euronet Pakistan will provide RIDB with services such as payment switch, card management, credit cards, ATM controller, POS/e-commerce acquiring, fraud management and card tokenization.

The agreement aims to build operational efficiency, reduce costs, improve service availability and ensure a seamless digital banking experience for RIDB's customers, the statement said.

"We are excited to be selected by Raqami as their technology partner for card issuance, fraud management and transaction processing, and play a pivotal role in the launch of the first Islamic Digital Bank in Pakistan," Kashif Gaya, CEO of Euronet Pakistan, said.

Umair Aijaz, CEO of RIDB, said the bank was committed to innovation, inclusion and economic empowerment in the era of industry-wide digitization. "This exclusive agreement between Raqami and Euronet is a key partnership that will help set the foundation for the country's first Islamic digital bank," he said.