Visa Aims for Tenfold Growth in Digital Payments Across Pakistan

Visa has set ambitious goals for Pakistan’s digital payment landscape, aiming to increase the number of businesses accepting digital payments by tenfold over the next three years. This bold strategy was highlighted by Leila Serhan, Visa’s General Manager for Pakistan, North Africa, and the Levant, in a conversation with Reuters.

Visa Aims for Tenfold Growth in Digital Payments Across Pakistan

This move follows Visa’s recent strategic partnership with 1Link, Pakistan’s largest payment service provider. The partnership focuses on streamlining remittances to Pakistan and promoting digital transactions within the country.

The Digital Payment Landscape in Pakistan

Pakistan, with a population of 240 million, has one of the largest unbanked populations globally. Only about 60% of the country’s adult population, roughly 83 million people, have access to a bank account, according to estimates by the central bank. This presents a significant challenge but also an opportunity for financial inclusion.

Visa is investing heavily in Pakistan’s digital payment infrastructure, seeking to make digital payments more accessible and affordable. Currently, Pakistan has 120,541 point-of-sale (POS) machines, according to data from the State Bank of Pakistan. Visa plans to dramatically increase this number to facilitate more widespread digital payment adoption.

Expanding Acceptance of Digital Payments

One of Visa’s key strategies is to simplify and expand the ways businesses accept digital payments. “Some businesses have more than one POS machine. We’re aiming to increase business acceptance of digital transactions by tenfold,” said Serhan.

To achieve this, Visa is introducing technology that allows smartphones to be transformed into payment devices. It will make it easier for smaller businesses to accept payments. This technology supports multiple forms of payment, including QR codes and contactless card transactions. Visa’s vision extends beyond large cities and established businesses, focusing on integrating small merchants into the digital economy.

The Role of Remittances

Remittances play a critical role in Pakistan’s economy. As one of the world’s top recipients of remittances, funds sent by overseas Pakistanis are a vital source of foreign exchange and contribute significantly to the country’s GDP. The partnership with 1Link aims to improve the security and efficiency of these transactions, encouraging the use of legal channels for sending money.

“We’re excited about completing this technical integration in the coming months. It will be a game changer for many consumers in Pakistan,” Serhan emphasized.

Collaboration with 1Link and Future Plans

Interestingly, Visa’s collaboration with 1Link includes making 1Link’s PayPak cards compatible with Visa’s Cybersource Platform for online transactions, even though PayPak is a direct competitor in digital payments.

As Pakistan undertakes economic reforms under a $7 billion bailout deal with the International Monetary Fund, digital payments will play a central role in the government’s digitization efforts. Visa also aims to support these initiatives, ensuring that digital payments become a core part of Pakistan’s financial infrastructure.

See Also: Pakistan Introduces Digital Visas for Business & Tourism