PayPak (Urdu: پے پاک) is a Pakistani domestic payment scheme launched by 1Link under the State Bank of Pakistan Vision 2020. Currently, 20 of the country’s banks have adopted it. The reason to launch this domestic payment scheme was to save inter-change costs of International Payment Schemes. PayPak cards can only be used on ATMs & POS Terminals throughout Pakistan and are yet to be enabled for online transactions.
The new payment scheme aims to compete in the domestic market with other international payment schemes like Rupay, Visa, MasterCard & UnionPay.
Technology and license
PayPak uses the Gemalto’s product PURE. PURE is an off-the-shelf payment application from Gemalto that is fully compliant with the EMV™ standard. It is designed for domestic schemes and private payment card associations looking for chip-based security and fast time to market. PURE is also a scheme-agnostic EMV application that private-label card issuers and national payment associations can use without the need to enter into a business agreement with another payment scheme.
The uptake of the payment scheme has been slow. As of April 2019, 1.5 million PayPak cards have been issued – representing 3.5% of the 41.9 million payment cards issued in the country.
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- ^ Jump up to:ab Khan, Mutaher (2019-04-21). “Tech talk: A local startup bets the bank on electronic payments”. Dawn. Retrieved 2019-04-28.
- ^“Pakistan’s First Domestic Payment Scheme PayPak Launched”. ProPakistani. Retrieved 2019-04-28.
- ^“1LINK selects Gemalto PURE white-label EMV technology for PayPak”. Daily Times. 2018-01-29. Retrieved 2019-04-28.
- ^“SBP asks banks to accelerate adoption of PayPak cards”. The Nation. 2017-12-08. Retrieved 2019-04-28.
- ^“Payment Systems Review – Quarter 1 FY19” (PDF). State Bank of Pakistan.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.