SBP sees PayPak driving Pakistan’s shift toward a cash-lite digital economy

State Bank of Pakistan (SBP) Governor Jameel Ahmad on Wednesday said PayPak is set to become the cornerstone of Pakistan's domestic digital payments infrastructure, as the central bank advances efforts to build a more inclusive, resilient and less cash-dependent financial system.

Speaking at the launch of HBL's co-badged debit card developed in partnership with UnionPay International and PayPak, Ahmad said the country's domestic payment network should remain at the centre of Pakistan's digital economy, with PayPak serving as the preferred platform for issuing debit cards within the country.

He said the co-badged cards combine PayPak's domestic payment capabilities with UnionPay's international network, enabling customers to make transactions both in Pakistan and overseas through a single card.

According to the governor, the initiative is aligned with the SBP's Vision 2028 strategy and the prime minister's Cashless Pakistan programme, which seek to promote digital financial services while creating a more inclusive and resilient payments ecosystem.

Highlighting the pace of digital adoption, Ahmad said the volume of retail digital transactions increased from approximately 6.9 billion to nearly 12 billion over the past year. During the same period, the number of merchants accepting digital payments expanded from around 500,000 to more than 2 million.

He added that the number of users of mobile banking applications reached nearly 137 million, while the proportion of workers' remittances credited through digital channels rose from about 80% to 92%, indicating growing confidence in digital financial services.

The SBP governor said sustaining this momentum would require continued innovation across the payments ecosystem. He called on banks, digital banks, payment service providers, fintech companies and merchants to work together to broaden digital payment acceptance, enhance cybersecurity measures and improve consumer awareness.

Congratulating HBL, UnionPay International, PayPak and 1LINK on the launch of the co-badged debit card, Ahmad said the collaboration illustrates how partnerships between domestic and international payment networks can encourage innovation, expand financial inclusion and support Pakistan's transition towards a digitally enabled, cash-lite economy.