Business transactions in Pakistan still favor cash
Visa (NYSE: V), a global leader in digital
payments, has released a new whitepaper outlining the benefits of digitizing
payments for Small and Medium Enterprises (SMEs). The report highlights that
over $121 billion in SME B2B transactions are ripe for digital transformation.
Umar S. Khan, Visa’s Country Manager for
Pakistan & Afghanistan, commented, “SMEs are a cornerstone of Pakistan’s
economy, contributing 40% to the national GDP and playing a crucial role in job
creation. However, despite their potential for growth, many SMEs remain limited
by cash-based transactions, which hinder efficiency and scalability.”
Read More Pakistan
holds Rs30.96 trillion in circulation, higher than India and Bangladesh
Khan emphasized that Visa recognizes the
potential of digital payments to address these challenges. “Our whitepaper
illustrates how commercial cards can transform B2B payments for SMEs, offering
more efficient processes and access to essential financial solutions,” he said.
He added that through partnerships with
government entities, banks, and fintech companies, Visa aims to raise awareness
and improve access to the infrastructure SMEs need to thrive.
According to the State Bank of Pakistan's
Payment Systems Quarterly Review for Q1 2025, there were 55.6 million payment
cards in circulation, with debit cards accounting for 88% of the total.
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official highlights cash culture as barrier to digital payment adoption in
Pakistan
Despite the growing
presence of digital payment solutions, SMEs in Pakistan still face significant
hurdles. Many are unaware of the benefits of commercial cards, and the lengthy
application and compliance processes deter them from adopting digital transactions.
Additionally, banks and financial institutions often view SMEs as high-risk
clients due to the lack of collateral and credit histories.
Source: Pro Pakistani