What are the common payment methods used in Pakistan?

In Pakistan, the main payment methods include the following:

1. cash payment

• lead position: Cash is still the main mode of payment, especially for small transactions and in rural areas, due to low bank penetration and traditional habits.

2. bank transfer

• Interbank transfer system (IBFT): Real-time transfers via 1Link or PayPak card networks.
• online banking: Major commercial banks (e.g. HBL, UBL, MCB) offer online money transfer services.

3. Mobile wallet/e-wallet

• JazzCash(Operated by Jazz Telecom): Supports recharge of phone bills, bill payments, money transfers, etc.
• EasyPaisa(owned by Telenor): similar functionality, widely used by the unbanked.
  -Others such as UBL Omni, HBL Konnect, etc.

4. Debit/credit cards

-Locally issued PayPak card (UnionPay co-operation), Visa/Mastercard credit cards are mainly used in urban areas.

• POS card swipes have limited popularity and are mostly used for mid-range and high-end merchants.

5.Cross-border and digital payments
-Alipay/WeChat: Accepted by some Chinese merchants and tourist spots, but not mainstream.
-PayPal: restricted (business accounts only), international credit card required for personal use.

6.emerging trend:: The government-promoted Raast Instant Payment System is designed to improve the efficiency of digital transactions.

caveat:
-Religious factors leading interest-sensitive groups to favour interest-free financial products.
-Policies change rapidly and it is advisable to confirm the latest compliance requirements.

To access the local market, it is advisable to partner with a mobile payment provider with a wide reach such as JazzCash/EasyPaisa, while retaining a cash collection channel.

In-depth analysis of Pakistan's payment ecosystem and market strategy recommendations

1. The rise of mobile payments and key players

The mobile payment market in Pakistan is mainly dominated by telecom operators and banks and the following are the top service providers:

• JazzCash(operated by Jazz Telecom)

  • The user base is huge, covering both urban and rural areas of the country.
  • Supports P2P transfers, bill payments, e-commerce transactions, international money transfers (e.g. Western Union partnership).
  • Scenario: B2C collections, offline agent network.

• EasyPaisa(under Telenor Pakistan)

  • Early market leader with a dense agent network.
  • Unique Advantages: Cross-border payment function with Alipay (pilot in 2023).

• UBL Omni & HBL Konnect(banking e-wallet)
  It mainly serves users with existing bank accounts and is suitable for bulk transactions such as corporate payroll.

✅ Corporate Recommendations:
If the target users are ordinary consumers or micro-merchants, the priority is to access JazzCash/EasyPaisa; if the public business is required, then consider UBL/HBL and other banking solutions.

2. Raast Instant Payment System - Government-driven financial infrastructure

State Bank of Pakistan (SBP) has launched Raast system to provide free real-time money transfer services:

• 🌟 P2G (person-to-government) payment facilitation, e.g., taxes and utility bills.
• 📈 B2B/B2C has great potential, but current penetration is still lower than mobile wallet.

⚠️ challenge:
Need to tie up bank accounts (low acceptance in rural areas), dependence on policy compulsion for roll-out (e.g., civil service payroll).

3. Use of POS and international cards

Although Visa/Mastercard is available at high-end hotels and supermarket chains, there are limitations.
🔹 Local debit cards (PayPak) are more common and partially supported by UnionPay (China-Pakistan Economic Corridor related scenarios).
🔹 Credit card penetration <5%, and the high risk of skimming makes merchants wary of accepting them.

💡 countermeasures:
Online business can try to co-operate with local card issuers for instalment payment; offline recommended "code + cash" mixed collection mode.

4. PayPal Alternatives - How to solve cross-border collections?

Due to PayPal's strict limitations on personal accounts, businesses have the option of.
✔️ Payoneer (more popular with freelancers, Freelancer funding portal).
✔️ Wire Transfer (SWIFT is expensive but reliable for large amounts).
✔️ Crypto tentative applications (e.g. Binance P2P transactions are growing fast but regulatory ambiguity).

[Strategy summary] Payment optimisation portfolio for entry into the Pakistani market

Need to discuss further industry-specific landing details? For example, how do cross-border e-commerce or Saas subscriptions adapt to local habits?