Local Payment Card Holds

Local payment card PayPak now holds over 25% of Pakistan’s 53 million debit cards, yet its actual usage remains limited to just 6%, according to Governor State Bank of Pakistan (SBP) Jameel Ahmad. He highlighted this significant performance gap while speaking at the launch event of Faysal Bank’s new co-badged debit card, introduced in collaboration with Mastercard and PayPak.

According to him, PayPak still plays a limited role in the digital payments sector. Furthermore, he linked this challenge to restricted e-commerce and international acceptance, weak marketing efforts, and the perception of PayPak as a low-value card.

PayPak’s Journey and Digital Vision

The Governor traced PayPak’s journey since its introduction in 2016. He explained that Pakistan created the scheme to provide an affordable, secure, and localized digital payment solution. Moreover, he emphasized that the newly introduced co-badged card will strengthen the country’s digital payments ecosystem.

He added that the launch represents a significant milestone in building a secure, efficient, and self-reliant financial system.

Co-Badged Cards to Boost Global and Local Payments

Governor Ahmad also noted that the co-badged card will allow consumers to make seamless international and e-commerce payments. Meanwhile, domestic transactions will settle within Pakistan. As a result, efficiency will improve and reliance on global networks will decline.

He described this co-badged solution as a “win-win” product that enhances customer convenience and strengthens the national payment infrastructure.

Co-Badging Gains Momentum in Pakistan

The Governor pointed out that co-badging is gaining strong momentum across Pakistan. For instance, the PayPak–UnionPay co-branded card launched recently reflects this trend. He added that more banks are expected to adopt similar models because these partnerships offer clear value.

Additionally, he stressed the importance of addressing existing constraints to build PayPak into a competitive and sustainable national scheme. He acknowledged recent improvements in marketing, e-commerce integration, and co-badging partnerships.

Call for Long-Term Strategy and Technology Investment

He urged 1Link to adopt a long-term strategy centered on modern technology, fraud detection tools, cybersecurity upgrades, and improved dispute resolution systems. Furthermore, he emphasized introducing incentives for both merchants and consumers. These steps, he said, will build greater trust and accelerate adoption of the national payment scheme.

SBP’s Commitment to a Strong Digital Payments Ecosystem

The Governor reaffirmed SBP’s commitment to creating a robust and inclusive digital payments ecosystem. He highlighted the significance of a regulatory framework that promotes innovation, competition, and consumer protection.

He further assured that SBP will continue to maintain a level playing field for both domestic and international payment schemes as Pakistan moves toward a secure and interoperable payments infrastructure.

Strengthening Pakistan’s Digital Transformation

In conclusion, Governor Ahmad said the co-badging initiative reflects the power of strategic partnerships. These collaborations expand digital access and boost consumer choice. He expressed optimism that more financial institutions will adopt co-badged cards, helping accelerate Pakistan’s digital transformation and strengthening financial inclusion.https://globiscope.com

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Local Payment Card Holds