Pakistan Plans First Local Payment-Scheme Credit Card

Pakistan is preparing to introduce a locally developed credit card under PayPak, marking a major step in the country’s effort to strengthen its domestic digital payment network.

The planned card will expand PayPak beyond its existing debit-card base and bring a local credit-card option into a market currently dominated by international payment schemes. The rollout is expected later this year, according to recent remarks attributed to 1LINK CEO Najeeb Agrawalla.

PayPak is Pakistan’s domestic payment scheme, operated by 1LINK. It was developed to support local payment processing, reduce dependence on foreign card networks for domestic transactions and improve access to digital financial services.

The move could give banks another option for issuing credit products, particularly for customers whose spending needs are mainly within Pakistan. A domestic scheme may also help lower some processing costs for local transactions, though final pricing, bank partners, eligibility rules and reward structures have not yet been announced.

Pakistan’s banking and fintech sectors have been gradually shifting toward digital payments as consumers increasingly use cards, mobile wallets and online banking for daily transactions. The launch of a PayPak credit card would add another product to that ecosystem and could support wider adoption of formal financial services.

PayPak already has a significant presence in the local debit-card market, and 1LINK has recently worked to expand the scheme’s role in e-commerce and bank card services. The expected credit-card launch would be part of that broader push to make local digital payments more accessible and competitive.

However, the success of the card will depend on how banks position it for customers. Key factors will include credit limits, annual fees, merchant acceptance, installment options, rewards and integration with online payment platforms.

For consumers, the development may offer a new locally backed alternative to existing credit cards. For banks, it could provide a domestic payment route for credit-card issuance and settlement.

Further details are expected when 1LINK and partner banks formally announce the product structure and launch timeline.

 

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