Pakistan’s central bank has introduced new rules requiring biometric verification for all cash transactions conducted over the counter through mobile wallet services such as Easypaisa and JazzCash. The State Bank of Pakistan (SBP) has mandated that, effective this month, customers must authenticate their identities, typically via fingerprint scans, when depositing or withdrawing cash through authorized retail agents. The policy is part of ongoing efforts to strengthen security measures and curb financial fraud in the country’s expanding digital payments landscape.
“This regulation applies strictly to cash handling by agents, and it is aimed at reducing fraud and improving transparency in the system,” SBP officials stated. The SBP has stressed that the new requirement applies only to physical cash transactions at agent locations. Digital activities such as wallet-to-wallet transfers, bill payments, and mobile top-ups remain unaffected, preserving convenience for users who rely on fully digital services.
Impact on Agents and Rural Communities
To support the rollout, retail agents across Pakistan have been equipped with biometric devices capable of capturing and verifying fingerprints. If a biometric scan fails or is not performed, the cash transaction will be declined. Both the SBP and major mobile wallet providers have launched public awareness campaigns to help customers understand the change and to reassure them that existing mobile wallet accounts will stay active and funds will remain secure.
Industry observers note that while the move should enhance security and improve monitoring of cash flows, it could pose challenges in rural areas where cash-based transactions through mobile wallet agents are an essential financial service. Many rural customers may face difficulties accessing biometric-enabled locations or may encounter delays while agents and users adapt to the new procedures. However, official statements have emphasized that the regulation is intended to protect consumers and foster trust in the digital financial system.
Broader Context and Global Trends
The SBP’s initiative reflects a broader global trend toward tighter security requirements in digital finance. Similar steps are emerging in other regions, such as Nigeria, where the Central Bank issued a circular on May 20, 2025, mandating real-time biometric verification for certain financial transactions to improve anti-money laundering compliance. This underscores how countries with large populations of mobile money users are increasingly looking to biometrics to strengthen regulatory oversight and combat financial crime.
Analysts estimate that the global digital identity market will grow significantly in the years ahead, with projections ranging from $65 billion to $145 billion by 2030, depending on the methodology used. Such forecasts highlight the accelerating demand for secure identity technologies as digital financial services become more widespread worldwide. In Pakistan, the SBP views the biometric rule as an important step to balance financial inclusion with security and transparency in the financial sector.
Sources: Profit Pakistan Today, Daily Pakistan, Bloom Pakistan
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By the ID Tech Editorial Team
