The SBP Digital Payments at Petrol Pumps initiative is set to make cashless transactions more accessible at fuel stations across Pakistan.
The State Bank of Pakistan (SBP) has introduced a new framework designed to encourage petrol pumps to accept more card and QR-based payments. The measures include limits on transaction charges for card payments and instructions for banks to expand Raast QR acceptance at fuel stations nationwide.
The initiative comes as Pakistan continues to move toward a more digital payments-based economy, while cash remains widely used for everyday purchases.
Under the new framework, the Merchant Discount Rate (MDR) for debit and credit card transactions at fuel stations will be capped at Rs. 1 per litre. The Interchange Reimbursement Fee (IRF) will also be limited to Rs. 0.20 per litre for fuel and related product purchases.
The special pricing arrangements will remain in effect until January 31, 2027, and apply to payment cards issued in Pakistan.
Table of Contents
SBP Digital Payments at Petrol Pumps Explained
The SBP Digital Payments at Petrol Pumps framework aims to reduce the cost of accepting digital payments for fuel station operators.
Under the new arrangements, banks and payment service providers will have to follow the specified pricing structure for card transactions at fuel stations.
The MDR for debit and credit card transactions will be capped at Rs. 1 per litre, while the IRF will be limited to Rs. 0.20 per litre.
The lower charges could make digital payment acceptance more attractive for fuel station operators that have previously been concerned about transaction costs.
The framework is also expected to support the expansion of payment infrastructure beyond major cities. official SBP website
Raast QR Payments to Expand Across Petrol Pumps
A major part of the SBP Digital Payments at Petrol Pumps initiative is the expansion of Raast QR payments.
The State Bank has instructed commercial banks to actively coordinate with fuel station operators to enable Raast QR-based payment acceptance.
Raast is Pakistan’s instant payment system, allowing users to make digital payments through participating banks and financial institutions.
With QR payment facilities, customers can potentially pay for fuel using their mobile banking applications without needing cash or a physical card.
This could be particularly useful at fuel stations where traditional POS terminals are not yet widely available.
Why Petrol Pumps Need More Digital Payment Options
Pakistan has more than 15,000 fuel stations, making petrol pumps one of the country’s most important everyday retail payment points.
However, POS terminals remain concentrated largely in major urban areas.
This means customers in smaller cities and other areas may have fewer options for paying digitally at fuel stations.
The SBP Digital Payments at Petrol Pumps framework could help address this gap by making it financially more attractive for banks and fuel station operators to expand card and QR payment facilities.
Greater digital payment availability could also reduce the amount of cash handled at petrol pumps.
Lower Card Charges Could Help Fuel Station Operators
Petroleum dealers have previously raised concerns about the cost of accepting card payments.
According to the Pakistan Petroleum Dealers Association (PPDA), fuel stations were paying roughly 0.8% in bank charges on card transactions.
For a fuel purchase of Rs. 300 per litre, such charges could translate into approximately Rs. 2.40 per litre.
The SBP’s new cap is intended to lower this burden.
PPDA Chairman Malik Khuda Baksh welcomed the decision, although the association has continued to call for zero charges.
The association said lower transaction costs could encourage more fuel stations and banks to invest in digital payment infrastructure.
SBP Digital Payments at Petrol Pumps Could Reduce Cash Dependence
One of the biggest potential benefits of the SBP Digital Payments at Petrol Pumps initiative is reduced dependence on cash.
Fuel purchases are frequent and often involve significant amounts of money, making them an important opportunity for expanding digital payment adoption.
Digital transactions can offer consumers greater convenience while potentially reducing the costs and security concerns associated with handling large amounts of physical cash.
For fuel station operators, digital payments can also make transaction records easier to maintain and reconcile.
The wider adoption of digital payments could therefore benefit both consumers and businesses.
68.3 Million Payment Cards in Pakistan
The potential customer base for digital payments is already significant.
According to the latest SBP data cited in the report, approximately 68.3 million payment cards are currently in circulation in Pakistan.
Card usage has continued to increase, particularly in the retail sector.
Expanding card acceptance at petrol pumps could therefore give millions of existing cardholders another place to use digital payment methods.
At the same time, Raast QR acceptance could provide an alternative for customers who prefer mobile banking over physical cards.
Image 4 Alt Text: Card payment through POS terminal at a Pakistani petrol station
How Long Will the New Charges Remain in Effect?
The special pricing arrangements introduced under the SBP framework will remain effective until January 31, 2027.
The arrangements apply to payment cards issued in Pakistan.
This gives banks and fuel station operators a defined period to expand payment acceptance and assess how lower transaction costs affect digital payment adoption.
The policy could also provide useful data for determining whether similar incentives should continue or be expanded after the current period ends.
What the New Framework Means for Consumers
For consumers, the SBP Digital Payments at Petrol Pumps initiative could bring several practical benefits.
More Payment Choices
Customers may increasingly be able to choose between cash, cards, and QR-based payments.
Greater Convenience
Mobile QR payments can eliminate the need to carry cash or a physical card.
Wider Acceptance
Banks working with fuel station operators could help expand digital payment facilities beyond large urban centers.
Faster Transactions
Digital payments can potentially reduce the need to count cash and provide electronic transaction records.
More Financial Inclusion
Wider acceptance of digital payment methods could encourage more consumers and businesses to participate in Pakistan’s formal digital financial ecosystem.
Frequently Asked Questions
What is the SBP Digital Payments at Petrol Pumps initiative?
It is a new framework introduced by the State Bank of Pakistan to encourage digital payment acceptance at fuel stations by reducing card transaction charges and expanding Raast QR payments.
What is the new card payment charge?
The Merchant Discount Rate for debit and credit card transactions at fuel stations will be capped at Rs. 1 per litre.
What is the IRF limit?
The Interchange Reimbursement Fee will be capped at Rs. 0.20 per litre for fuel and related product purchases.
What is Raast QR?
Raast QR allows customers to make instant digital payments by scanning a QR code through participating banking applications.
How long will the special pricing arrangement last?
The arrangement will remain effective until January 31, 2027.
How many fuel stations operate in Pakistan?
More than 15,000 fuel stations operate across Pakistan, according to the information cited in the report.
How many payment cards are in circulation?
Latest SBP data cited in the report puts the number at approximately 68.3 million payment cards.
Final Thoughts
The SBP Digital Payments at Petrol Pumps initiative could accelerate Pakistan’s transition toward cashless payments.
By capping card transaction charges and encouraging banks to expand Raast QR acceptance, the State Bank of Pakistan is addressing one of the key barriers to digital payment adoption at fuel stations.
The policy could encourage petrol pumps to install more POS terminals and QR payment facilities while giving consumers greater flexibility in how they pay.
With more than 15,000 fuel stations and millions of payment cards already in circulation, the petroleum sector represents a significant opportunity for Pakistan’s digital payments ecosystem.
If the initiative succeeds, customers could increasingly leave their cash at home and pay for fuel through cards or mobile-based Raast QR payments.
