PayPak
PayPak is a domestic payment service available in Pakistan.
It was launched in 2016 by 1Link to save inter-change costs of International Payment Schemes. PayPak cards can only be used on ATMs, POS terminals, and e-commerce portals within Pakistan.
The new payment scheme aims to compete in the domestic market with other, established, international payment schemes such as Visa, Mastercard, and UnionPay.
Technology and license
PayPak uses Gemalto's product PURE. PURE is an off-the-shelf payment application from Gemalto that is fully compliant with the EMV standard. It is designed for banks and private payment card associations seeking chip-based security and a fast time to market. Additionally, PURE is a scheme-agnostic EMV application that private-label card issuers and national payment associations can utilise without the need to enter into a business agreement with another payment scheme.
The uptake of the payment scheme was initially slow, with State Bank of Pakistan intervening to encourage adoption. By February 2021, more than 4 million PayPak cards had been issued – representing about 9% of the overall 44.5 million payment cards issued in the country. By January 2024, this number rose to 11 million cardholders, giving PayPak a market share of 25% in the country's debit card segment and 19% among the overall 57 million payment cards issued.