Collaboration between Visa and 1LINK to expedite digital payments
Visa (NYSE: V), a global leader in
digital payments, has joined hands with 1LINK, Pakistan’s largest payment
service provider and payment system operator. The agreement was formalized in
the presence of Mr. Saleem Ullah, Deputy Governor of the State Bank of
Pakistan, and Mr. Syed Sohail Javaad, Executive Director of the Digital
Financial Services Group of the State Bank of Pakistan, along with senior
executives from Visa and 1LINK.
This partnership will integrate
Visa's Alias Directory Service into the 1LINK network, aiming to simplify
inbound remittances, enhance user experience, and protect sensitive payment
information.
The collaboration addresses the
fragmented global payment ecosystem, where banks, digital wallets, and local
payment methods often operate independently within varying regulatory
frameworks. By integrating Visa’s technology, this partnership will
significantly impact inward remittances in Pakistan and foster collaboration
across these disparate systems.
Additionally, the alliance will enhance
Pakistan’s payment infrastructure by leveraging Visa Direct to facilitate
real-time cross-border payments. According to Visa’s “Money Travels: 2024
Digital Remittances Adoption Report,” digital apps are increasingly favored for
international money transfers due to their convenience and security.
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The partnership will also enable the
adoption of new payment methods, such as accepting 1LINK’s PayPak cards on
Visa’s CyberSource Platform. This integration will provide secure transaction
capabilities for PayPak users at online merchants. CyberSource offers advanced
gateway technology, payment expertise, and support services to help acquirers
manage their online transactions effectively.
Leila Serhan, Senior Vice President
and Group Country Manager for Visa’s North Africa, Levant, and Pakistan (NALP)
region, commented, “Pakistan is among the world’s top 10 remittance-receiving
countries. As the country undergoes rapid digital transformation, Visa’s
partnership with 1LINK underscores our commitment to expanding financial
inclusion and improving financial services. The Visa Alias Directory service
and CyberSource platform will bring unprecedented resilience, security, and
functionality to Pakistan’s payment ecosystem.”
Najeeb Agrawalla, Chief Executive
Officer of 1LINK, expressed enthusiasm about the collaboration, emphasizing its
potential to enhance speed, security, and accessibility for inward remittances.
“With 1LINK’s robust e-payment network and Visa’s global reach, this
partnership will establish a new channel for receiving remittances, fostering
financial stability and economic development. The acceptance of PayPak on the
CyberSource platform will significantly broaden Pakistan’s eCommerce landscape
and strengthen the country’s payment infrastructure.”
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According to the State Bank of
Pakistan’s second quarterly report for 2024, there is a growing preference for
digital payment channels over traditional methods. The central bank recently
reported a 28% increase in remittances in April 2024, totaling $2.8 billion,
and a 13% rise in digital payment volumes in eCommerce. Visa supports
Pakistan’s vision of developing a robust digital payments infrastructure that
meets the needs of consumers and businesses for seamless and secure
transactions.
Source: Islamabad Post