Pakistan Eyes Shift from Visa and Mastercard with Mandatory PayPak Cards

The Pakistani government is considering a proposal to make PayPak cards mandatory for government employees' salaries in an effort to reduce dependence on global payment networks like Visa and Mastercard.

The proposal, submitted by 1LINK, recommends linking all government salary accounts to PayPak cards and issuing domestic payment cards for recipients of government subsidies and social welfare initiatives.

Public transport fare systems are also set to be integrated with PayPak, and policymakers have been urged to introduce tax incentives on Point-of-Sale (PoS) transactions made through PayPak cards.

The proposal aims to push adoption by making attractive consumer incentives available, including cashback offers, discounts, and loyalty rewards for everyday use of the domestic card scheme.