Visa aims to expand the number of businesses in Pakistan that accept digital payments by ten times over the next three years, as stated by the company's general manager for Pakistan, North Africa, and Levant in an interview with Reuters.

Leila Serhan's remarks coincided with Visa's announcement of a strategic alliance with 1Link, the largest payment service provider in Pakistan, which is designed to enhance remittance processes in the country and promote digital transaction adoption.

With a population of 240 million, Pakistan has one of the largest unbanked demographics globally. According to central bank estimates, only 60% of the adult population, or approximately 83 million individuals out of 137 million, possess a bank account.

Visa is committed to developing the digital payment infrastructure in Pakistan, with the goal of making digital transactions more affordable and accessible.

As per central bank data, there are currently 120,541 point of sale (POS) machines in the country.

Visa plans to substantially increase this figure. "Some businesses operate multiple POS machines. Our goal is to achieve a tenfold increase in the acceptance of digital transactions by businesses," Serhan noted.

The strategy includes leveraging technology that allows smartphones to function as payment devices and supports various payment methods, such as QR codes and card tapping. Visa's objective is to reach not only major urban centers and established businesses but also smaller vendors.

The 1Link initiative is designed to enhance the remittance process, focusing on improving payment security and encouraging transactions through legitimate channels.

As one of the leading recipients of remittances worldwide, Pakistan is significantly dependent on the financial support from its expatriates, which plays a crucial role in the nation's foreign exchange reserves and contributes notably to its GDP.

"We are eager to complete this technical integration in the upcoming months, and I believe it will be transformative for many consumers in Pakistan," stated Serhan.

This collaboration with 1Link will also allow for the acceptance of 1Link's PayPak cards on Visa's Cybersource Platform for online payments, even though PayPak competes in the digital payments sector.

In July, Pakistan entered into a $7 billion bailout agreement with the International Monetary Fund, which encompasses reforms aimed at increasing revenue and formalizing the economy.

"Digital payments will be central to the government's digitization efforts, and we are committed to continuing our partnership with them," Serhan added.