What is Raast? Pakistan's instant payment system and the Raast ID

Beginner-friendly Updated June 2026

So what is Raast? Raast is Pakistan's national instant payment system, built and run by the State Bank of Pakistan (SBP). It connects banks and wallets on one rail so money moves from one account to another within seconds, any time of day, at no cost to you. The name comes from the Urdu word for direct or straight, and that is the idea: payments go straight from sender to receiver without the delays you used to get with older transfer methods.

If you have ever waited hours (or until the next working day) for an inter-bank transfer to land, Raast is the fix. It settles in real time, runs on weekends and holidays, and the SBP has kept it free for ordinary users.

What a Raast ID is

A Raast ID is your mobile number linked to one of your bank accounts. Once it is set up, someone can send you money using just your phone number. You never have to share your full account number or IBAN, which is both more convenient and safer.

Think of it like this. Instead of telling a friend a 24-character IBAN over a noisy phone call (and hoping nobody mistypes a digit), you give them your mobile number. They type it into their bank app, your name shows up so they can confirm it is really you, and the money arrives in seconds.

A few things worth knowing about the Raast ID:

• One mobile number can be linked as a Raast ID to one bank account at a time. To switch it to a different account later, you de-link it from the current account and re-link it to the new one, which then becomes the destination.
• You can still receive money the old way using your IBAN. The Raast ID is an extra, easier option, not a replacement.
• Linking it is free and done through your own bank, using its app, internet banking, or a branch.

How person-to-person payments work

Person-to-person (P2P) is the everyday case: paying a family member, splitting a bill, sending rent to a landlord. Here is the flow in plain terms.

• Open your bank app and choose the Raast transfer option.
• Enter the receiver's Raast ID (mobile number) or their IBAN.
• The system shows you the receiver's name. Check it matches the person you intend to pay.
• Enter the amount, confirm, and the transfer completes in seconds.

Say you owe a friend Rs 4,500 for a shared dinner. You type their mobile number, see their name come up, send Rs 4,500, and it lands in their account before you have left the table. No fee, no waiting.

How person-to-merchant payments work

Raast also handles person-to-merchant (P2M) payments, which is how you pay shops, online stores, and service providers. The most visible form is the Raast QR code. A merchant displays a QR at the counter, you scan it with your bank app, enter the amount, and pay directly from your account into theirs.

P2M covers more than the counter. The scheme supports in-store (proximity) payments, online and e-commerce checkout, and bill payments. For a small shopkeeper this is useful because there is no card machine to rent and no swipe fee eating into a thin margin. For you, it means paying for a Rs 800 grocery run straight from your bank account without carrying cash.

Why Raast matters

Raast is not just a faster transfer button. It changes a few things at once:

• It is free. The SBP does not charge end users for Raast transfers, which removes a real cost that used to discourage small digital payments.
• It is instant and always on. Real-time settlement, day or night, including weekends.
• It is secure. Transactions run through the central bank's infrastructure with payment-account-name confirmation, so you can verify who you are paying before you send.
• It widens financial inclusion. By making digital payments cheap and simple, Raast pulls more people, especially those who relied only on cash, into the formal banking system.

Raast rolled out in stages: bulk payments first, then person-to-person transfers, and later person-to-merchant payments. Use has grown steadily as more banks and wallets connected, so it has moved well beyond an early-adopter tool into something ordinary people use for everyday purchases. For current figures on volumes and value processed, the SBP's payment systems reviews are the authoritative source.

How to register a Raast ID

You can set up a Raast ID through your bank's mobile app, its internet banking, or by visiting a branch. Every bank's screen layout is slightly different, but the general steps are the same, and you always do this through your own bank, never on a random third-party site. Here are the app steps, which most people use.

• Log in to your bank app.
• Find the Raast section (often under payments, transfers, or settings).
• Choose the option to register or link a Raast ID.
• Confirm the mobile number you want to use. It is usually the number already registered with your bank.
• Pick which of your accounts the Raast ID should point to, then confirm with the OTP your bank sends you.

Once linked, your mobile number works as your Raast ID right away. If you later want a different account to receive payments, you de-link the Raast ID from the current account and re-link it to the one you prefer, which you can do through your bank's app, internet banking, or branch.

Staying safe with Raast

Because Raast is instant, a transfer cannot easily be reversed once it is sent, so a little caution goes a long way. Always confirm the receiver's name on screen before you press send. Never share your OTP, PIN, or banking password with anyone, including someone claiming to be from your bank or from SBP. A common scam is a caller asking you to "verify" or "reactivate" your account by reading out a code: that code is the key to your money, so do not give it out.

If you want to go further with safer, smarter banking, it helps to choose the right account in the first place. See our guide on how to choose a savings account in Pakistan. If you earn online, Raast is handy for receiving local payments, so it pairs well with our guides on freelancing in Pakistan and how to make money online in Pakistan, which cover getting paid for your work.

Key takeaways

• Raast is the State Bank of Pakistan's instant payment system: free, real-time, bank-to-bank transfers that work day and night, including weekends.
• A Raast ID links your mobile number to one bank account so people can pay you without you sharing your account number or IBAN.
• Raast supports both person-to-person transfers and person-to-merchant payments, including QR codes at shops and online checkout.
• You register a Raast ID inside your own bank app, choosing which account it points to and confirming with an OTP.
• Transfers are instant and hard to reverse, so confirm the receiver's name before sending and never share your OTP or PIN.

Frequently asked questions

Is Raast free to use?

Yes. The State Bank of Pakistan keeps Raast transfers free for end users. There is no charge for sending or receiving money through Raast, whether person-to-person or person-to-merchant.

What is the difference between a Raast ID and an IBAN?

An IBAN is your full bank account number used for transfers. A Raast ID is simply your mobile number linked to one account, so people can pay you without needing your IBAN. You can still receive money via IBAN; the Raast ID is just an easier alternative.

Can I link my Raast ID to more than one bank account?

A single mobile number can be set as a Raast ID for one account at a time. To point it at a different account, you de-link it from the current account and re-link it to the new one, and that account then becomes the destination for payments sent to your Raast ID.

How long does a Raast transfer take?

Seconds. Raast settles in real time and runs around the clock, including weekends and public holidays, so the money typically lands in the receiver's account almost immediately.

Can a Raast payment be reversed if I send it to the wrong person?

Because Raast is instant, transfers are difficult to reverse once sent. Always check the receiver's name shown on screen before confirming, and contact your bank straight away if you make a mistake.

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Educational only, not financial advice.