Visa plans to boost the number of businesses accepting digital payments in Pakistan by tenfold over the next three years.
According to Leila Serhan, Visa’s general manager for Pakistan, North Africa, and the Levant. This announcement coincides with Visa’s new strategic partnership with 1Link, Pakistan’s largest payment service provider, aimed at improving remittance processes and promoting digital transactions in the country.
Pakistan, with its population of 240 million, has one of the largest unbanked populations in the world. Central bank estimates reveal that only 60% of the 137 million adults in the country -- about 83 million people -- currently hold a bank account.
Visa is investing in developing digital payment infrastructure to make digital transactions more affordable and accessible.
At present, Pakistan has 120,541 point-of-sale (POS) machines. Visa plans to substantially increase this number, with an objective of 10-fold expansion in digital payment acceptance by businesses. "Some businesses have more than one POS machine. We're aiming at 10-folding businesses' acceptance (of digital transactions)," said Serhan.
The company’s strategy includes leveraging technology that allows phones to be used for payments and supporting various payment methods such as QR codes and card taps.
Visa aims to reach not just large cities and mainstream businesses but also smaller merchants across the country. "We're really looking forward to finishing this technical integration in the coming months, and I think it's going to be a game changer for a lot of the consumers in Pakistan," said Serhan.
The partnership with 1Link is set to enhance remittance processes, improving payment security and encouraging transactions through official channels. Pakistan, a major recipient of remittances, heavily relies on these funds, which are crucial for its foreign exchange reserves and GDP.
Serhan expressed optimism about the impact of the technical integration with 1Link, anticipating it will significantly benefit Pakistani consumers. Additionally, the collaboration will allow 1Link’s PayPak cards to be used on Visa’s Cybersource platform for online transactions, despite PayPak being a competitor in the digital payments space.
The move aligns with Pakistan’s recent $7 billion bailout agreement with the International Monetary Fund, which includes reforms aimed at increasing revenue and formalizing the economy. "Digital payments are going to be at the heart of what the government wants to do from a digitization perspective, and we will continue to partner with them," Serhan said.
