Visa aims to boost the number of businesses accepting digital payments in Pakistan tenfold over the next three years, according to Leila Serhan, the payments giant's general manager for Pakistan, North Africa, and Levant, in an interview with Reuters. This announcement coincides with Visa's strategic partnership with 1Link, Pakistan's largest payment service provider, which is designed to streamline remittances into the country and promote digital transactions.
Pakistan, with a population of 240 million, has one of the world's largest unbanked populations. Central bank estimates indicate that only 60% of its 137 million adult population, or 83 million adults, have a bank account. Visa is investing in digital payment infrastructure to make these transactions more affordable and manageable. Currently, Pakistan has 120,541 point of sale (POS) machines, but Visa plans to significantly increase this number.
"Some businesses have more than one POS machine. We're aiming at ten-folding businesses' acceptance (of digital transactions)," Serhan explained. The strategy involves technology that turns phones into payment instruments and accepts various forms of payment, including QR codes and card taps. Visa aims to expand beyond large cities and mainstream businesses to include smaller merchants.
The partnership with 1Link aims to enhance the process of sending and receiving remittances, including improving payment security and increasing transactions through legal channels. As one of the top recipients of remittances globally, Pakistan heavily relies on funds from overseas Pakistanis, which are a crucial source of foreign exchange and significantly contribute to the country's GDP.
"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," Serhan said. The collaboration with 1Link will also allow 1Link's PayPak cards to be accepted on Visa's Cybersource Platform for online transactions, despite PayPak being a competitor in digital payments.
Pakistan signed a $7 billion bailout deal with the International Monetary Fund in July, which includes reforms such as raising revenue and documenting the economy. "Digital payments are going to be at the heart of what the government wants to do from a digitisation perspective, and we will continue to partner with them," Serhan noted.
