Visa is embarking on an ambitious plan to boost digital payment acceptance across Pakistan, targeting a tenfold increase in businesses accepting digital payments over the next three years.
This move comes as part of a broader effort, which includes Visa’s strategic partnership with 1Link, to expand the country’s digital payment infrastructure and make digital transactions more accessible, affordable, and manageable for businesses.
Highlights
- Visa plans to increase businesses accepting digital payments tenfold in Pakistan over the next three years.
- Partnership with 1LINK aims to simplify remittances and secure digital transactions.
- Integration of Visa Alias Directory Service within 1LINK to protect sensitive payment credentials.
- Visa’s strategy includes innovative technology like QR payments and card tapping, targeting smaller merchants and rural areas.
- PayPak cards are to be accepted on Visa’s global Cybersource platform for online transactions.
Visa’s ambitious growth plan for Pakistan’s Digital Payments
Leila Serhan, Visa’s General Manager for Pakistan, North Africa, and Levant, highlighted the company’s vision to transform Pakistan’s payments landscape. Speaking to Reuters, she emphasized that Visa’s strategy involves rolling out innovative technologies that can turn smartphones into payment instruments, enabling businesses to accept various forms of payment, including QR codes and card taps.
With a population of 240 million, Pakistan is home to one of the largest unbanked populations globally, and Visa’s efforts align with the country’s financial inclusion goals. According to the State Bank of Pakistan (SBP), only 60% of Pakistan’s 137 million adults have a bank account. Visa is working to bridge this gap by partnering with 1LINK, Pakistan’s largest payment service provider, in a landmark agreement that could reshape the country’s remittance and digital payment ecosystem.
The signing ceremony was attended by Deputy Governor of SBP Saleem Ullah, Executive Director of DFS Group Sohail Javaad, senior officials from SBP, Chief Executive Officer of 1LINK Najeeb Agrawalla, Chairman 1LINK Abrar Ahmed Mir, Senior Vice President and Group Country Manager for Visa (North Africa, Levant, and Pakistan) Leila Serhan, and management teams from both 1LINK and Visa.
Partnership with 1LINK to streamline Remittances and boost Financial Inclusion
Visa’s partnership with 1LINK, which was signed in Karachi on September 11, 2024, is designed to streamline remittances in Pakistan while enhancing payment security and fostering the adoption of digital payment methods. 1LINK’s PayPak cards, which are already a key player in the local market, will now be accepted on Visa’s global Cybersource platform, expanding their reach to online merchants.
The integration of Visa’s Alias Directory Service into the 1LINK network is another cornerstone of the deal. This service simplifies the process of receiving remittances, improving user experience while safeguarding sensitive payment information. With Pakistan being one of the world’s top remittance recipients, the partnership aims to facilitate real-time, secure cross-border payments via Visa Direct.
Expanding Digital Payment access beyond urban centers
Visa’s aggressive expansion plans are also aimed at smaller merchants in rural and underserved areas, extending beyond large urban centers to ensure that digital payments become a reality for all. Currently, Pakistan has around 120,541 point-of-sale (POS) machines, but Serhan stated Visa’s goal is to drastically increase the number of businesses accepting digital payments.
“Some businesses have more than one POS machine. We’re aiming at tenfolding businesses’ acceptance [of digital transactions],” Serhan remarked, signaling Visa’s commitment to expanding digital payment options beyond traditional setups.
The partnership also represents a significant leap toward financial inclusion, with both Visa and 1LINK working together to simplify remittance inflows. According to the State Bank’s latest quarterly report, digital remittances have increased by 28%, highlighting the growing role of digital channels in Pakistan’s economy.
Najeeb Agrawalla, CEO of 1LINK, expressed optimism about the collaboration’s potential to enhance Pakistan’s e-commerce landscape. “This partnership aims to establish a new channel for receiving home remittances. This will contribute to greater financial stability and economic development. The acceptance of PayPak across the Cybersource platform will significantly expand the eCommerce landscape in Pakistan, strengthening the payment ecosystem of the country,” Agrawalla said.
Leila Serhan, Senior Vice President and Group Country Manager, for the North Africa, Levant and Pakistan (NALP) region at Visa, said: “Pakistan is among the world’s top 10 remittance-receiving countries … The country is on an exciting path of rapid transformation, driven by its aspiration to become a digitally enabled economy. Visa’s partnership with 1LINK underpins our unwavering commitment to unlock financial inclusion within Pakistan and expand financial services for underserved communities.”
As Pakistan moves forward with its IMF-mandated economic reforms, digital payments are expected to play a central role in helping the country achieve its financial inclusion and economic documentation goals. Visa’s partnership with 1LINK is set to transform the nation’s payment systems, enabling seamless, secure transactions and boosting the country’s digital economy.