1LINK has proposed mandatory PayPak cards for government salary accounts, subsidies and public sector payment programmes. The plan seeks to reduce Pakistan’s dependence on international card networks, including Visa and Mastercard. The proposal would cover government employees, subsidy recipients and beneficiaries of social safety-net programmes. It would also extend PayPak use to mass-transit payment systems, according to details shared by the State Bank of Pakistan. PayPak Push Targets Government Services 1LINK wants tax relief for PayPak purchases made through point-of-sale terminals and e-commerce platforms. It has also recommended financial incentives to encourage consumers and merchants to use the domestic card scheme. The company proposed PayPak-compatible terminals at all major public-facing government offices. These would include NADRA centres, Excise departments and Passport Offices. The plan also recommends discounts, cashback and loyalty rewards on selected PayPak transactions. It specifically identifies utility bills, fuel purchases, public transport fares and other government payments. Read More: Pakistan Records Mysterious 6x Surge in Credit Card ATM Use 1LINK operates Pakistan’s largest banking payment switch and manages PayPak, the country’s domestic card scheme. The company introduced PayPak to route more local transactions through national infrastructure and reduce reliance on foreign networks. The proposal has not yet become mandatory government policy. However, it supports the central bank’s wider effort to expand domestic digital payment channels. SBP Expands PayPak and Raast Ecosystem The SBP has introduced several measures to strengthen PayPak’s reach and functionality. These include co-badged cards, wider e-commerce acceptance, promotional incentives and public awareness campaigns. Faysal Bank launched Pakistan’s first PayPak-Mastercard co-badged debit card in December 2025. The product allows customers to use PayPak locally while accessing Mastercard’s international network abroad. The central bank says these measures have increased merchant acceptance and transaction volumes. It has also accelerated the expansion of Raast Person-to-Merchant payments. Read More: Faysal Bank Introduces Pakistan’s First Cardless ATM Withdrawal via Mobile Raast allows individuals, businesses and government bodies to make real-time digital payments. The government allocated Rs3.5 billion for a Raast QR-code subsidy during the 2025-26 financial year. The SBP set the subsidy at 0.5 percent of each eligible transaction or Rs100, whichever was lower. The programme covered transactions from September 1, 2025, until June 30, 2026. Daily Raast P2M transactions climbed from about 60,000 in June 2025 to nearly 1.1 million by June 2026. The increase highlights the rapid adoption of QR-based payments across Pakistan. The SBP plans to keep onboarding merchants and expanding QR payments. It also wants more transactions to move through PayPak and Raast instead of international payment rails. For consumers, mandatory PayPak issuance could offer wider local acceptance and lower-cost digital payments. Its success, however, will depend on reliable service, strong merchant coverage and meaningful rewards.
82% of Pakistanis Use AI While Shopping Online, Visa Study Finds
Pakistani consumers are rapidly embracing artificial intelligence (AI) and social commerce as part of their online shopping experience, but many remain cautious about allowing AI to make purchases on their behalf, according to Visa’s latest Stay Secure study. The annual survey, conducted by Wakefield Research and released by Visa, highlights the growing role of AI-powered tools in digital commerce while underscoring persistent concerns about trust, fraud and online security. The findings come as Pakistan’s digital economy continues to expand, driven by rising internet penetration, smartphone adoption and increasing use of digital payment platforms. According to the study, 82% of consumers in Pakistan have used AI tools to assist with shopping. The most common uses include comparing prices, checking reviews and finding gift ideas. Around 56% use AI to compare prices, while 53% rely on it to review product ratings. Another 47% use AI tools to generate gift recommendations. Consumers appear largely satisfied with the technology. The survey found that 93% believe emerging technologies, including AI-powered tools, make online shopping faster and easier. AI is also influencing how consumers discover brands. About 55% of respondents said they typically encounter new retailers and products while shopping online. Trust Remains a Key Challenge Despite growing acceptance of AI, consumers remain reluctant to hand over complete purchasing decisions to automated systems. Only 42% said they would trust AI agents to complete checkout on their behalf. The findings suggest that while shoppers welcome AI assistance during the decision-making process, they still prefer maintaining control over financial transactions. At the same time, many consumers see AI as a powerful tool against fraud. The survey found that 65% believe AI has made scams easier to identify, while 87% expect artificial intelligence to play a critical role in protecting consumers from fraud in the future. Visa executives say trust will remain central to the next phase of digital commerce. “In Pakistan, we are seeing strong momentum as consumers embrace digital commerce, with AI and social platforms becoming an increasingly integral part of how people discover and shop,” said Leila Serhan, Senior Vice President and Group Country Manager for North Africa, Levant and Pakistan at Visa. “As digital ecosystems evolve, consumers are looking for experiences that not only offer greater convenience but also deliver confidence and control at every step of the journey,” she added. Social Media Shopping Expands Amid Fraud Concerns The report also highlights the rapid growth of social commerce in Pakistan. According to the findings, 82% of consumers have purchased products directly through social media platforms. However, fraud risks continue to grow alongside online shopping activity. More than half of respondents, 55%, reported experiencing a financial scam during the past 12 months. Among those affected, 44% said the scam occurred through social media platforms. The study also identified growing concerns regarding children’s online safety. Around 77% of respondents said children struggle to recognize scams, while 33% reported that a child in their lives had fallen victim to a scam while gaming or shopping online. Visa said consumers increasingly expect payment providers, online marketplaces and regulators to play a leading role in fraud prevention through real-time alerts, secure payment systems and trusted checkout experiences. “As commerce moves toward more agentic, AI-powered experiences, the study shows that consumers are embracing the convenience AI can bring to shopping but remain cautious when it comes to AI completing purchases on their behalf,” Serhan said.
