Good news for the people of Pakistan that they will soon be able to use their own local card payment system PayPak. It is stated that the State Bank of Pakistan (SBP) has officially given the go ahead to 1 LINK for PayPak’s commercial launch from June 1, 2017. With this launch, Pakistan will become the 28th country to have its own domestic payment system.
Just reminding you that the PayPak was first launched on April 5, 2016 by former governor SBP Ashraf Mahmood Wathra. Since then PayPak continues to operate as a pilot project, undergoing testing for operational and other technical issues.
During the last one year, several banking institutions inked an agreement with PayPak for card issuance. Currently PayPak has issued more than 300,000 cards to local consumers with the numbers growing every day. After its commercial launch, PayPak has plans to aggressively market throughout Pakistan.
PayPak cards are chip-based and they are safer than the currently issued strip cards. This will reduce the risk of data scamming and improve service quality.
This payment system will be launched by 1 LINK which currently provides interoperability of ATM services to major banks in Pakistan. 1 LINK will use its data and ATM experience to professionally operate the new payment scheme.
1LINK states its vision by saying, “In line with State Bank of Pakistan Vision 2020 to enhance and promote Financial Inclusion, 1LINK (Guarantee) Limited brings you Pakistan’s First Domestic Payment Scheme “PayPak” aimed at providing efficient, cost-effective, robust and ubiquities payments solutions.
PayPak’s strategic objective includes offering Domestic Payment Scheme to provide low cost payment services to every citizen of Pakistan.
1LINK has always been in the forefront of enablement of the poor in the country by providing support to BISP, WATAN cards, IDP cards etc. Launch of PayPak is also a step in the same direction.”
There are 4 Global Payment Schemes (Visa, Master, Union Pay and Japan Credit Bureau) providing services to customers in Pakistan right now. These schemes charge a very high fee and their transition costs are also very high. Comparatively, PayPak will work locally in Pakistani Rupees, helping to minimize those transition costs.