Pakistan Cards and Payments – Opportunities and Risks to 2028

Pakistan Cards and Payments Market Report Overview

The annual value of card transactions in the Pakistan cards and payments market is $8.2 billion in 2024. The market will grow at a CAGR of more than 21% during 2024-2028. The government’s National Financial Inclusion Strategy, in conjunction with the State Bank of Pakistan’s (SBP) initiatives, is bolstering the expansion of the banked population and the payment card market.

Pakistan Card Transactions Outlook, 2024-2028 ($ Billion)

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The Pakistan cards and payments market research report provides a detailed analysis of market trends influencing the industry. It provides transaction values and volumes for several payment instruments for the review period. In addition, the Pakistani cards and payments market analysis offers information on the country’s competitive landscape, including market shares of issuers and schemes. The report also entails regulatory policy details and provides extensive coverage of any recent changes in the regulatory structure.

Pakistan Cards and Payments Market Dynamics

The use of cash for day-to-day transactions remains prevalent among consumers due to various factors, such as a high unbanked population and limited financial awareness. Financial inclusion remains a top priority, with the government and other commercial banks introducing initiatives to improve banking penetration.

In addition, contactless transport payments are gaining traction in Pakistan. The top benefits of such a payment method include time saved due to faster transactions and added convenience, among others.

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Pakistan Cards and Payments Market Segmentation by Payment Instruments

Cash has the highest transaction volume in the Pakistani payments space in 2024

The key payment instruments in the Pakistani cards and payments market are cash, cards, credit transfers, direct debits, and cheques. Historically, cash has been the most preferred payment method in Pakistan. The preference for cash in Pakistan is deeply ingrained in the culture and is further reinforced by the significant number of unbanked individuals in the country.

Pakistan Cards and Payments Market Analysis by Payment Instruments (Volume Terms), 2024 (%)

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Pakistan Cards and Payments Market Segments

Debit cards accounted for the highest share of the Pakistan payment card market in 2024

The key segments in the Pakistan cards and payments market are card-based payments, e-commerce payments, mobile payments, and alternative payments.

Card-Based Payments: Even though cash remains the most common method for transactions in Pakistan, the use of payment cards is steadily increasing. The government and the SBP are actively working to expand banking access and promote electronic payments through initiatives such as the National Financial Inclusion Strategy and the provision of basic bank accounts with debit cards.

Pakistan Cards-Based Payments Market Analysis, 2024 (%)

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Pakistan Cards and Payments Market - Competitive Landscape

A few of the leading players in the Pakistan cards and payments market are:

• HBL Habib Bank
• Allied Bank
• UBL
• MCB
• Askari Bank Limited

The debit card market in Pakistan is concentrated and banks target specific consumer segments to promote debit card adoption. For instance, banks offer customized bank accounts targeted at young customers. MCB Bank’s Fan Club account is for individuals aged 18 and under. Along with a debit card, account holders are offered benefits, such as a minimum balance requirement with in-store and online shopping discounts.

Pakistan Cards and Payments Market Analysis by Players, 2024

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Pakistan Cards and Payments Market - Latest Developments

• In March 2024, JS Bank and its digital platform Zindigi launched the JS HER Debit Card and HER Zindigi Debit Card on International Women’s Day. These cards are tailored for female customers, providing secure access to financial services, along with free insurance coverage for various cancers, special discounts, and reward programs.
• As of July 2024, the SBP lowered the interest rate to 19.5% in June 2024. This reduction, part of the SBP’s monetary policy, could make credit cards more appealing to consumers, potentially increasing their usage.

Segments Covered in the Report

Pakistan Cards and Payments Instruments Outlook (Value, $ Billion, 2020-2028)

• Cash
• Cards
• Credit Transfers
• Direct Debits
• Cheques

Pakistan Cards and Payments Market Segments Outlook (Value, $ Billion, 2020-2028)

• Card-Based Payments
• E-commerce Payments
• Mobile Payments
• Alternative Payments

Scope

The report provides:

• Card market size in terms of the number of cards, value, and volume of transactions in Pakistan, along with detailed card segmentation of debit, credit, and charge cards available in the country.
• Market sizing and analysis of major payment instruments including cash, cards, credit transfers, direct debits, and cheques.
• Payment market trends and growth for both historical and forecast periods.
• Competitor analysis with detailed insights into leading card issuers and schemes.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• A detailed snapshot of the country’s key alternative payment brands.

Key Highlights

Digital payment acceptance is underdeveloped in Pakistan and is limited to urban centers and high-end merchants. To expand the digital payment infrastructure and make payments accessible to consumers, Mastercard collaborated with the digital wallet JazzCash in November 2023. The partnership was to collectively launch QR code payments, Pay by Link, and Tap on Phone solutions to facilitate cost-effective and widespread acceptance of digital payments for micro-sized enterprises, SMEs, as well as freelancers and gig workers. By facilitating broader acceptance of digital payments, the initiative is expected to increase the adoption of payment cards as more merchants and consumers begin using these payment methods.

Contactless transport payments are gaining traction in Pakistan. According to Visa’s Future of Urban Mobility Survey conducted in 2023, 95% of respondents expect contactless payment options to be made available on public transit. The top benefits of contactless payments, as identified by the survey, include time saved due to faster transactions, added convenience, and ease of use. Additionally, in May 2024, the Sindh Government launched the Automated Fare Card for the People’s Bus Service in Karachi, further promoting the adoption of contactless payments in public transportation.

The State Bank of Pakistan (SBP) is working to increase financial inclusion for women via its National Financial Inclusion Strategy, with a focus on the Banking on Equality Policy. As of June 2023, there were 29 million unique female bank accounts, representing over 43% of the female adult population. The SBP’s efforts to promote digital banking and financial literacy, including initiatives such as Financial Literacy Week, are expected to boost debit card penetration among women and further close the gender gap in financial services. The event educated the public on digital tools, such as Raast, QR codes, the Asaan Mobile Account (AMA), and the Asaan Digital Account, with support from SBP Banking Services Corporation field offices and commercial banks.

Reasons to Buy

• Make strategic business decisions, using top-level historical and forecast market data, related to the Pakistan cards and payments industry and each market within it.
• Understand the key market trends and growth opportunities in the Pakistan cards and payments industry.
• Assess the competitive dynamics in the Pakistan cards and payments industry.
• Gain insights into marketing strategies used for various card types in Pakistan.
• Gain insights into key regulations governing the Pakistani cards and payments industry.