Fawad Chaudhry wants to end debit, credit cards in Pakistan

[Proudpakistaniguy]

Fawad Chaudhry wants to end debit, credit cards in Pakistan
Zaheer Ali Khan
May 27 , 2019

Photo: AFP

After launching Pakistan’s first Islamic calendar on Sunday, Federal Science and Technology Minister Fawad Chaudhry announced on Monday that he wants to implement a mobile phone payment system in the country.

The minister took to Twitter on Monday morning, fresh off his successful launch of a controversial Islamic calendar that has been seen as a challenge to religious clerics, particularly the Ruet-e-Hilal Committee. He said that his next big challenge is replacing debit and credit cards with a mobile phone payment system.

For technology to progress, we need payments to become easier, he said, adding that God willing, in the next few months all payments, from bus fares to buying cars, will be made using mobile phones.

Related: Eid on June 5, according to Pakistan’s first Islamic calendar

Mobile payments are just that – payments made from your mobile phone. They use mobile wallets, which store your debit and credit card information so you can pay for your goods and services digitally. They are generally considered safer alternatives to credit or debit card use.

Mobile payments are especially popular in neighbouring China, which has a $12.77 trillion mobile payment market, according to Medium.

https://www.samaa.tv/technology/2019/05/fawad-chaudhry-wants-to-end-debit-credit-cards-in-pakistan/

 

[litman]

mobile phone payment system. is he crazy? who will ensure the cyber security of a smart phone and how many people in pak can afford smart phone?people are reverting back to traditional cheque system after so many frauds through debit card and now this idiot says every thing will be through phone which will further make things easier for cyber criminals. just last week watsapp reported of a major security breach by israelis. i am sure fawad ch will not stay at this post either for long.

 

[Death Professor]

mobile phone payment system. is he crazy? who will ensure the cyber security of a smart phone and how many people in pak can afford smart phone?people are reverting back to traditional cheque system after so many frauds through debit card and now this idiot says every thing will be through phone which will further make things easier for cyber criminals. just last week watsapp reported of a major security breach by israelis. i am sure fawad ch will not stay at this post either for long.

its just a bs title to instigate people or gain a little bit attention. There is no way debit/credit cards could be ended by mobile payment system. Another option as a payment system sure, but replacement nopes, it's not even done(hasn't been done) in developed countries.

 

[1Paki$tani]

I have real concerns about this whole concept due to number of factors. Which are as follows:

1. Security Concerns. Many in Pakistan are not aware of security threats especially to mobile phones through virus or firmware. Many people will click on links sent by others and will have these software installed in the background. In addition there is concern of security at both the bank end, where we have seen the mass hacking of banking system about year or so ago. In addition the terminal's can be hacked or even exploited by the vendors to process unauthorised transactions.

I am currently surprised to see many government websites including the new moon sighting website does not have HTTPS protocol. this shows the seriousness to on Part of government in terms of IT Security.

2. Security for consumers. What happens if there is unauthorised transactions? will the bank cover the consumers or will that be passed onto the consumers?

3. Lack of central banking system which would allow instantaneous deposits and transfers.

Though it is a great step to ensure that many parts of the economy are captured thus taxed. As all the money into bank accounts can be traced unlike cash transactions.

However, wouldn't it be easier that each bank within their own app allow option of payment via NFC rather than designing new system altogether.

 

[Zapper]

mobile phone payment system. is he crazy? who will ensure the cyber security of a smart phone and how many people in pak can afford smart phone?people are reverting back to traditional cheque system after so many frauds through debit card and now this idiot says every thing will be through phone which will further make things easier for cyber criminals. just last week watsapp reported of a major security breach by israelis. i am sure fawad ch will not stay at this post either for long.

You should not go for a foreign payment system, not even the Chinese cuz that'll expose the financial details of Pak's public and will be vulnerable to hackers. Like how Chinese use Alipay and Wechat-pay, Indians use PayTM or Bhim which has credible support from their respective govts, Pak can start a mobile payment system supported by the govt ensuring all transactions are encoded without any loopholes.

 

[Respect4Respect01]

its just a bs title to instigate people or gain a little bit attention. There is no way debit/credit cards could be ended by mobile payment system. Another option as a payment system sure, but replacement nopes, it's not even done(hasn't been done) in developed countries.

i don't know man, watch this 2 minute report from Bloomberg on how China is becoming cashless society. Its pretty interesting.

 

[Fracker]

I have real concerns about this whole concept due to number of factors. Which are as follows:

1. Security Concerns. Many in Pakistan are not aware of security threats especially to mobile phones through virus or firmware. Many people will click on links sent by others and will have these software installed in the background. In addition there is concern of security at both the bank end, where we have seen the mass hacking of banking system about year or so ago. In addition the terminal's can be hacked or even exploited by the vendors to process unauthorised transactions.

I am currently surprised to see many government websites including the new moon sighting website does not have HTTPS protocol. this shows the seriousness to on Part of government in terms of IT Security.

2. Security for consumers. What happens if there is unauthorised transactions? will the bank cover the consumers or will that be passed onto the consumers?

3. Lack of central banking system which would allow instantaneous deposits and transfers.

Though it is a great step to ensure that many parts of the economy are captured thus taxed. As all the money into bank accounts can be traced unlike cash transactions.

However, wouldn't it be easier that each bank within their own app allow option of payment via NFC rather than designing new system altogether.

Although I do want mobile payments in a secure manner. Yet argument of taxing is not justified. Since same thing can be done with credit card. In fact was involved in UAE VAT implementation and now Oman VaT implementation so I know if bank's enforce everything can be taxed.

Last adding to you list true security in current world having Chinese and American mobile and operating systems and same time trade war in on full swing. It will be stupid to depend on Mobile payment system.

PS: Pakistan is currently ridiculously over taxed, stop squeezing people more. Increase revenue!! Taxation is not a viable alternative to revenue.

 

[fisher1]

How is this moronic idiotic given the ministry in Pakistan. He should go sell aloos in a market or something.

Let's blow his mind

Easypaisa
Google pay
Samsung pay
Venmo
Many banks offer mobile payment
Even Western Union offers it

 

[1Paki$tani]

How is this moronic idiotic given the ministry in Pakistan. He should go sell aloos in a market or something.

Let's blow his mind

Easypaisa
Google pay
Samsung pay
Venmo
Many banks offer mobile payment
Even Western Union offers it

The problem is that Pakistan, as I understand, does not have central banking System thus though these things exist they are not integrated thus allowing for mass use.

What Pakistan requires is real time central banking system with instantaneous transfer irrespective of which bank you have accounts with.

Although I do want mobile payments in a secure manner. Yet argument of taxing is not justified. Since same thing can be done with credit card. In fact was involved in UAE VAT implementation and now Oman VaT implementation so I know if bank's enforce everything can be taxed.

Last adding to you list true security in current world having Chinese and American mobile and operating systems and same time trade war in on full swing. It will be stupid to depend on Mobile payment system.

PS: Pakistan is currently ridiculously over taxed, stop squeezing people more. Increase revenue!! Taxation is not a viable alternative to revenue.

Credit card is not everyone's cup of tea, however in Pakistan many people have phones and that too smart phones of one type or another. Thus it can allow capturing of those sectors who are operating cash only.

There are two set of security risk:

1. Government level risk or corporate level risk as you have identified. These risks are hard to control even if you try your best. Recently it was learned that data from one of the underwater sea cable was being re-routed through China thus exposing all data on that cable for analysis. This is next generation warfare.

2. Second set of risk is criminal risk whether it be individual level or organised crime. This is where consumers will lose their money in large amount.

 

[KAL-EL]

Is American Express in Pakistan?

 

[fisher1]

Is American Express in Pakistan?

Nop

Well, it is here but not as common at select banks. Bank alfalah for one and not readily accepted everywhere.

Pretty pointless.

 

[KAL-EL]

Nop

Thx.. was just curious. I would think a modern country like Pakistan would have all the major cards.

 

[fisher1]

Thx.. was just curious. I would think a modern country like Pakistan would have all the major cards.

See my edited post. I kind of messed up hehe.

It's not used at all here. But issued by select banks.

 

[Lincoln]

i don't know man, watch this 2 minute report from Bloomberg on how China is becoming cashless society. Its pretty interesting.

Pakistan isn't ready for this.

 

[third eye]

mobile phone payment system. is he crazy?

In a span of about two years ( thanks mostly to demonetisation) , mobile payment systems have been very successful in India. In Cities , virtually everyone be it a store, an ola type cab, the corner shop , petrol pumps, tolls even the local milkman & Pan / cigarette / vegetable shop accept such payments.

I think you should not dismiss it outright, it works

There is no way debit/credit cards could be ended by mobile payment system. Another option as a payment system sure, but replacement nopes, it's not even done(hasn't been done) in developed countries.

Valid points