Visa, a global leader in digital payments, has unveiled plans to significantly increase the number of businesses accepting digital payments in Pakistan. The company aims to achieve a tenfold rise in digital payment acceptance over the next three years, enhancing the country’s digital payment ecosystem.
Partnership with 1Link: In a strategic move, Visa has partnered with 1Link, Pakistan’s largest payment service provider. This collaboration is designed to streamline remittances and bolster digital transaction security. The partnership is expected to play a crucial role in modernizing payment processes and expanding digital payment infrastructure across Pakistan.
Challenges and Opportunities: Pakistan, with a population of approximately 240 million, faces a major challenge with a large unbanked population. Current data shows that only 60% of the 137 million adults in the country have a bank account. Visa’s initiative aims to address this gap by improving access to digital payment methods and integrating advanced technologies.
Expanding Digital Payment Infrastructure: Visa plans to increase the current number of point-of-sale (POS) terminals in Pakistan, which stands at 120,541. The company will leverage technology that enables smartphones to function as payment instruments and support various payment methods, including QR codes and contactless card transactions. This expansion will include both large cities and smaller towns, broadening the reach of digital payments.
Enhancing Remittances and Security: The partnership with 1Link will enhance the efficiency of remittance transfers, which are a significant source of foreign exchange for Pakistan. By improving the security of these transactions and promoting legal channels for remittances, Visa and 1Link aim to support the country’s economic stability.
Alignment with IMF Deal: Visa’s efforts align with Pakistan’s recent $7 billion bailout deal with the International Monetary Fund (IMF). This deal includes economic reforms to boost revenue and formalize the economy. Visa’s focus on digital payments supports the government’s objectives of digitization and economic reform.
Conclusion: Visa’s ambitious plan to increase digital payment acceptance in Pakistan, combined with its partnership with 1Link, is set to transform the financial landscape of the country. By expanding digital payment infrastructure and improving remittance processes, Visa is contributing to a more inclusive and secure financial system in Pakistan.
