KARACHI (Reuters) – Visa plans to increase the number of businesses accepting digital payments in Pakistan tenfold over the next three years, the payments giant’s general manager for Pakistan, North Africa and Levant told Reuters.
Leila Serhan’s comments followed Visa’s announcement of a strategic partnership with 1Link, Pakistan’s largest payment service provider. The partnership aims to streamline remittances into South Asia and encourage digital transactions.
Pakistan, with a population of 240 million, is home to one of the world’s largest unbanked populations. Only 60% of its 137 million adult population, or 83 million adults, have a bank account, based on central bank estimates.
Visa is investing in building digital payment infrastructure in the country, aiming to make digital payments less costly and more manageable.
Currently, Pakistan has 120,541 point of sales (POS) machines, according to central bank data.
Visa intends to significantly increase this number. “Some businesses have more than one POS machine. We’re aiming at ten-folding businesses’ acceptance (of digital transactions),” said Serhan.
The strategy uses technology to turn phones into payment instruments, accepting QR and card tap payments. Visa plans to reach smaller merchants beyond large cities.
The 1Link deal aims to improve the process for sending and receiving remittances, including bolstering payments security, boosting such transactions via legal channels.
Pakistan, a top remittance recipient, heavily relies on funds from overseas Pakistanis as a vital source of foreign exchange. These remittances 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,” said Serhan.
Furthermore, Visa’s partnership with local entities will play a crucial role in this transformation. Through these innovative collaborations, Visa digital payments will become more seamlessly integrated into daily life.
