Visa Targets Tenfold Increase in Digital Payments in Pakistan through Strategic Partnership with 1Link
KARACHI, – Visa, the global payments leader, has announced plans to significantly expand the number of businesses accepting digital payments in Pakistan over the next three years, with the aim of increasing this figure tenfold. Leila Serhan, Visa’s General Manager for Pakistan, North Africa, and Levant, shared this ambitious goal in an interview with Reuters.
The announcement comes on the heels of a strategic partnership between Visa and 1Link, Pakistan’s largest payment service provider. This collaboration is set to streamline remittance flows into the country while encouraging greater adoption of digital transactions.
With a population of 240 million, Pakistan is home to one of the largest unbanked populations globally. According to estimates from the State Bank of Pakistan (SBP), only 60% of the country’s 137 million adults—or 83 million individuals—have access to formal banking services.
Visa is focusing its efforts on building a robust digital payment infrastructure that will make transactions more accessible and cost-effective. Pakistan currently has 120,541 point-of-sale (POS) machines, based on SBP data. Visa intends to substantially increase this number, targeting businesses across the country, including smaller merchants beyond the major cities.
“Some businesses have more than one POS machine. We’re aiming to tenfold the number of businesses that accept digital payments,” Serhan remarked.
Visa’s strategy includes deploying technologies that transform smartphones into payment devices, and introducing QR codes and contactless payments. This move is expected to simplify the payment process and enable a wider range of merchants to accept digital payments.
Enhancing Remittances with 1Link Partnership
The partnership with 1Link is designed to improve the efficiency and security of remittance transactions, a key source of foreign exchange for Pakistan. Remittances from overseas Pakistanis are a vital component of the nation’s economy, significantly contributing to its GDP.
The integration with 1Link will help route more remittances through legal channels, ensuring higher security and ease for consumers. “We’re eager to complete this technical integration in the coming months, and we believe it will be a game changer for many consumers in Pakistan,” said Serhan.
A notable aspect of this partnership is the acceptance of PayPak cards—Pakistan’s domestic payment scheme—on Visa’s Cybersource platform for online transactions. This development is particularly significant, as PayPak has traditionally been seen as a competitor in the digital payments space.
Digital Payments to Drive Economic Reform
Pakistan’s digital transformation is a key focus of the government’s economic reform agenda. As part of a $7 billion bailout deal signed with the International Monetary Fund (IMF) in July, Pakistan has committed to raising revenue and increasing economic transparency.
“Digital payments will be central to the government’s digitization efforts, and Visa will continue to partner with them to achieve these goals,” Serhan added.
Visa’s expanded presence and collaboration with key players like 1Link underline the company’s commitment to fostering financial inclusion and accelerating the digitization of Pakistan’s economy.
Source: Reuters
