“Almost every transaction can be conducted digitally and people are appreciating how these services enable a much more feasible infrastructure for payments”, commented Mohammad Mudassar Aqil, President & Chief Executive Officer at Telenor Microfinance Bank / Easypaisa, while having an exclusive discussion with our Editor in Chief on the impact of outbreak on the overall financial landscape in Pakistan.
1. How do you see the overall landscape of economy in Pakistan during the next 12 months?
These are unprecedented times. Financial as well as social estimates about the future turn of events continue to fluctuate on a constant basis. Around the world and in Pakistan, businesses are slowly opening up but the hopes of a V-shaped recovery are unrealistic. A general uncertainty is dampening confidence among consumers to pursue similar routines as they did before the pandemic.
The gains that had been made in international and local industries have taken a severe hit. In order to reverse these impacts, we will need time and concerted efforts across the board. Despite opening of markets, traders have reported substantially lower sales volume as compared to previous years. Similar reports have been received from other sectors as well and the future is quite uncertain.
2. How do you imagine financial industry post COVID-19?
The financial industry is amongst the ones that are expected to see the greatest shift. We can divide these in terms of what changes financial institutions will witness, and how consumer behaviors are expected to sway. Ever since the lock-downs began and economic impacts began to show, players in the financial sector have remained vigilant. The State Bank of Pakistan was quick to provide relief and introduce remedial measures for all key contributors in the economy. We were quick to forward these to our customers.
Customers are embracing a shift towards digital platforms. Easypaisa for instance has grown extensively in terms of users and transactions over the last 2 months. A lot of new offerings have also been added to enhance user experience and help them embrace ‘the new normal’.
3. Since there are limitations in usage of physical channels and the surge in digital channels usage is being witnessed, do you think digital payments eco-system will be revolutionized in Pakistani landscape post COVID-19?
We are already witnessing a substantial shift in the digital payments eco-system. The prospects for digital financial services are quite promising. There are several factors which are driving this change with the primary cause being concerns for health and well-being which come with contact through physical exchange of currencies during transactions. As people make a choice to use digital banking solutions, they realize that there is convenience and extensive ease in them.
4. As several new payment players are entering into the market, what significant impact can collaborations create in nourishment of eco-system and create a win-win situation for everyone at this point in time?
Collaborations are key in development of an ecosystem. To make a sustainable shift towards digital payments possible, all players would have to work together to create a seamless user experience. Easypaisa has so far partnered with several organizations to make sure customers are equipped with the tools they need to execute all their transactions through the use of a single application. Similarly, we need more collaborations as well as incentives to cater to the demand that has been created in the market especially after COVID-19 outbreak.
5. How are you leveraging new technologies for driving unrivaled customer experiences and efficiencies during the crisis?
As technology has advanced, Easypaisa has aimed at being a complete digital payments solution and in such a difficult time where COVID-19 has halted movement and people are indoors, it provides almost every service that a user would need to conduct their daily financial activities while staying safe at home.
With the help of our Easypaisa application, users can enjoy a variety of different services which include but are not limited to: maintaining accounts and wallet, transferring of money and conducting payments, recharging their mobile balances, paying utility bills, availing various discounts, receiving international remittances and topping up their wallets which are integrated with various e-commerce platforms. As a whole, these services are enabling the users to support the financial exchanges needed most in this time of crisis.
6. How are you witnessing a shift in consumer behavior as a surge in digital adoption is being witnessed?
Pakistan’s current financial inclusion stands at just 21%. Findings have shown that people continue to prefer cash transactions. As the major influencers in this equation, people have to become more accepting towards the use of mobile wallets. We are witnessing a general rise in traction towards these services and are putting our best foot forward to enhance our offerings so that masses can avail these facilities with ease.
Ever since COVID-19, we have witnessed a massive change in behavior. With social distancing being considered as the best means to check the spread, people have started using online mediums instead of traditional ones. Since the lock-down, the number of daily transactions from the Easypaisa application has grown by 17%, while a 35% increase in new activations has also been witnessed. There has also been an increase of 184% in bank transfers and around 15% growth in airtime and bundle subscriptions in overall transactions.
7. What new products and digital offerings have been introduced for your customers?
When Easypaisa was launched in 2009, there was no concept of digital payment solutions. After a decade of trials and consumer-driven expansions, we have been able to create an application that will become a one-stop solution for all digital financial services.
In such testing times, our team is tirelessly working to come up with more innovative options for not only individuals but entire organizations and the Government too. We have worked diligently on the introduction and widespread use of QR Payments across the country. We also launched an Easy Business portal which is aimed at facilitating SMEs to conduct their businesses. Moreover, we have also introduced live Corona updates section on our app as well as an Eidi option (Eidipaisa) that is customized specially for Eid.
Similarly, we are working with the Government and other charitable organizations to enable cash transfers to those who are in need in this difficult time.
