Pakistan Targets Visa, Mastercard with Mandatory PayPak Card Push

Pakistan's State Bank has proposed making PayPak cards mandatory for government employees' salary accounts and subsidy programmes, aiming to reduce reliance on international payment networks like Visa and Mastercard.

The proposals, shared by the State Bank of Pakistan (SBP), recommend issuing PayPak cards for government salaries as well as beneficiaries of social safety net programmes and mass transit payment systems.

To boost adoption, 1LINK has suggested tax incentives on Point-of-Sale (PoS) transactions made through PayPak cards, along with cashback offers and loyalty rewards on utility bill payments, fuel purchases, and other government-related transactions.