Visa sees a lot of digital payment opportunities in Pakistan
Leila Serhan, Senior Vice President and Group Country Manager for North
Africa, Levant, and Pakistan at Visa, underscored the vital role of
cybersecurity in advancing digital payments in Pakistan during
a recent interview with The News.
Excerpts from the Interview:
Q: What initiatives is Visa implementing to protect users and
assist partner banks in fighting fraud and cybercrime in Pakistan?
A: Cybersecurity is a critical focus for Visa.
We offer advanced AI-driven risk and fraud management solutions that support
our users and partner financial institutions throughout the transaction
process. Technologies like tokenization enhance user experience while securing
data by converting 16-digit card numbers into tokens. Our goal is to implement
this technology across our partner network to protect consumer information.
In Pakistan, issues like social engineering fraud are prevalent. It’s
essential to educate users not to share transaction data or card details via
email. Additionally, users should keep their card verification values
confidential.
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official highlights cash culture as barrier to digital payment adoption in
Pakistan
Recently, Visa formed a strategic partnership with 1Link, the leading
payment service provider in Pakistan, to streamline remittances and boost
digital transactions. This partnership integrates the Visa Alias Directory
Service within the 1LINK network to facilitate faster remittances and protect
sensitive payment information.
Given that Pakistan ranks among the top ten remittance-receiving countries,
simplifying this process is crucial. With Visa’s enhancements, individuals in
markets like the UAE and Saudi Arabia can easily send money home using just a
mobile number, promoting secure and efficient transactions.
Q: What steps is Visa taking to boost contactless payment
acceptance among small businesses?
A: We’re working closely with banks and
stakeholders to provide tailored financial products and cost-effective
acceptance solutions for small and medium enterprises (SMEs). Our tap-to-phone
technology is central to this strategy, and we aim to increase the ability of
small and micro businesses to accept digital payments tenfold. We are also
forming partnerships to enhance financial literacy and support small business
growth.
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seeing growing trend of digital payments
Q: How does Visa collaborate with government entities like the
State Bank of Pakistan?
A: Our discussions with the State Bank of
Pakistan have been very positive. It’s essential to maintain an active dialogue
between the government and private sector companies like Visa. We continuously
explore ways to enhance the consumer experience in Pakistan and recognize the
importance of remittances to the economy.
Additionally, we’re focusing on money movement solutions that can benefit
the country and are committed to investing in cybersecurity, having allocated
over $10 billion in the past decade. Our expertise in enhancing digital
financial systems will be an asset for Pakistan.
We also prioritize including SMEs in the financial ecosystem, ensuring they
have access to capital and lending. Our conversations regarding Pakistan’s
instant payment system, Raast, reflect our belief that promoting digital
payments is vital. Our global experience with real-time payment systems will
help improve cybersecurity and fraud prevention.
Q: What distinguishes the Pakistani market from others?
A: The youth demographic in Pakistan is pivotal
in propelling the digital economy. While there are immense opportunities for
digital payments, financial inclusion remains a challenge. The rapidly evolving
infrastructure and a young, urbanizing population create a unique landscape for
digital payment providers. We’re working with banks to facilitate the
integration of youth into the financial system.
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and 1LINK join hands to facilitate digital payments
Q: Do you see the rise of retail digital banks in Pakistan as a
threat to international payment schemes like Visa?
A: Not at all. We view digital banks as valuable
partners, similar to our relationships with banks worldwide. They can
significantly enhance financial inclusion due to their lower customer
acquisition costs. We’re eager to collaborate with these digital banks to offer
tailored products and solutions once they launch, and we’re actively engaging
in discussions with many of them.
Source: The News