 We can use a built-in prepaid smart card for our daily purchases such as phone booths, highway tolls, daily college expenses or any bookstore. Electronic Banking in PakistanThesis for Master of Business Administration, Spring 2010Blekinge Institute of Technology, Ronneby, SWEDEN121.2 BACKGROUNDThe growing change in global competitiveness in business behavior has improved the volume of banking in the world. It has produced additional banking knowledge and also improved customer demand for the services provided by banks. This revolution stimulated the banking sector to provide a payment system compatible with the demands of the electronic market (Balachandher, 2001). In the name of increased competition, many banks and organizations have not only reduced costs but also increased their products. Technology has radically changed the preconditions for service delivery in recent years (Fredriksson, 2003). Banks are the financial institutions that provide savings services to consumers, money transmission services and credit services (Sinkey, 1990). In other words, banks are concerned with the security of transactions and the set of management functions. In this