SBP steps up push for co-badged cards as PayPak usage remains low

The State Bank of Pakistan (SBP) on Tuesday said it is accelerating efforts to deepen digital payments as PayPak continues to post low usage levels despite a sizable footprint in the debit card market.

Data from the central bank shows PayPak accounts for more than 25 percent of the 53 million debit cards issued in Pakistan but represents only 6 percent of total card usage. SBP Governor Jameel Ahmad said the gap reflects limited e-commerce and international acceptance, modest marketing, and the perception of PayPak as a low-value product.

Ahmad made the remarks at the launch of Faysal Bank’s co-badged card developed with Mastercard and PayPak. Co-badging combines multiple payment brands on a single debit, credit, or prepaid card, a model the SBP has been promoting to improve flexibility and expand acceptance.

The governor said the central bank remains committed to a regulatory framework that supports innovation and competition while ensuring consumer protection. He added that the SBP would maintain a level playing field for both domestic and international schemes as Pakistan builds a secure and interoperable payments infrastructure.

According to Ahmad, the new card will allow consumers to conduct international and e-commerce transactions, with domestic payments routed within Pakistan to enhance efficiency and reduce reliance on external networks.

The launch follows the rollout of the PayPak–UnionPay co-badged card last month, signalling growing collaboration between Pakistan’s domestic payment scheme and global networks. Ahmad said more banks are expected to adopt similar arrangements due to the value such partnerships offer.