Governor State Bank of Pakistan (SBP) Jameel Ahmad highlighted that while the local payment card, PayPak, holds over 25% of the 53 million debit cards in circulation, its actual usage accounts for just 6%.
Speaking at the launch ceremony of a new co-badged card by Faysal Bank in collaboration with Mastercard and PayPak, he emphasized the limited role of domestic payment cards in Pakistan’s financial ecosystem.
The Governor attributed the low adoption of PayPak to factors such as restricted acceptance on international and e-commerce platforms, limited marketing efforts, and the perception of the card as low-value. Since its inception in 2016, PayPak has aimed to provide an affordable, secure, and locally relevant payment solution for Pakistan’s growing digital economy.
The new co-badged card, Governor Ahmad said, will enhance Pakistan’s digital payments landscape by enabling seamless international and e-commerce transactions while settling domestic payments locally. He described the initiative as a “win-win” for consumers and the national payments infrastructure, highlighting its potential to improve efficiency and reduce reliance on foreign networks.
The launch follows the recent PayPak–UnionPay co-branded card and reflects a broader trend of strategic alliances between Pakistan’s domestic payment scheme and global payment networks. Governor Ahmad expressed confidence that more banks would adopt similar models, given their strong value proposition for consumers.
He stressed that PayPak’s long-term sustainability depends on addressing existing constraints through enhanced marketing, co-badging, e-commerce integration, and investments in technology, fraud detection, cybersecurity, and dispute resolution. He also urged 1Link to develop strategies that incentivize merchants and consumers, strengthen trust, and accelerate adoption of the national payment scheme.
Reaffirming SBP’s commitment to a robust, inclusive, and modern digital payments ecosystem, the Governor underscored the importance of regulatory frameworks that promote innovation, competition, and consumer protection.
He concluded that co-badging initiatives demonstrate the benefits of partnerships in expanding digital access, enhancing consumer choice, and advancing Pakistan’s journey toward a self-sustaining and interoperable payments infrastructure.
