Payment methods in Pakistan 🇵🇰

In 2024, Pakistan’s e-commerce landscape is rapidly evolving, with diverse payment methods supporting a growing online shopping culture. Consumers are increasingly adopting flexible and secure payment options to meet their purchasing needs. From traditional methods like cash on delivery (COD) to modern approaches such as digital wallets, bank transfers, and Buy Now, Pay Later (BNPL) services, Pakistan’s payment ecosystem is becoming more dynamic. While Visa and Mastercard dominate card payments, local systems like PayPak, JazzCash, EasyPaisa, and RAAST are playing pivotal roles in expanding digital financial inclusion. This overview explores the various payment options shaping the future of e-commerce in Pakistan.

Payment by Card in Pakistan

In Pakistan, card payments are growing steadily for e-commerce transactions. Visa and Mastercard dominate the card payment landscape. These cards are accepted by nearly all online merchants, making them the preferred option for many consumers. American Express is available but is less commonly used compared to Visa and Mastercard.

Local banks such as HBL (Habib Bank Limited), MCB Bank, and UBL (United Bank Limited) issue most cards in Pakistan. These banks offer both debit and credit cards, ensuring secure transactions for e-commerce sites. Debit cards are more frequently used for everyday purchases, while credit cards provide flexibility for larger payments.

Pakistan also has a local card system called PayPak. Introduced by the State Bank of Pakistan, PayPak is the country’s first domestic payment network. It is widely accepted by local merchants and is gaining popularity for online transactions. The PayPak card offers lower transaction fees compared to international networks like Visa or Mastercard. However, its usage is still more common for in-store transactions than for online shopping.

E-commerce sites in Pakistan must integrate Visa and Mastercard gateways to cater to a broader customer base. While PayPak is an emerging player, international cards dominate the online payment ecosystem.

Local actors: PayPak

Payment by cash in Pakistan

In Pakistan, cash on delivery (COD) is the most popular payment method for e-commerce. Consumers prefer COD because it allows them to pay only when the product is delivered. This method builds trust, especially in a market where digital payments are still developing. Most major e-commerce platforms, including Daraz and Yayvo, support COD to reach a wider customer base.

In addition to COD, services like JazzCash and EasyPaisa play a crucial role in enabling cash-based consumers to participate in online shopping. Both services allow users to deposit physical cash into their digital wallets through agents or franchise locations. This makes it easier for consumers without traditional banking access to shop online.

While COD dominates e-commerce, JazzCash and EasyPaisa are key players enabling cash-based consumers to enter the digital payment space. Though these are not traditional “cash payment brands” in the strict sense, they offer digital wallet services combined with cash deposits. These services bridge the gap for consumers who prefer using cash but want to engage in online shopping.

Payment by bank transfer in Pakistan

Payment by BNPL in Pakistan

In Pakistan, Buy Now, Pay Later (BNPL) is gaining traction in e-commerce, providing consumers with flexible payment options. The most prominent BNPL service is QisstPay, which was the first to receive a BNPL license from the Securities and Exchange Commission of Pakistan (SECP). QisstPay allows customers to split payments into interest-free installments, making it easier for them to manage larger purchases. This service has been rapidly adopted across various e-commerce platforms and is expected to grow in popularity.

Another notable player is KalPay, which offers Shariah-compliant BNPL services. KalPay partners with local businesses to offer interest-free installment plans, making it appealing to both consumers and merchants. This has been especially effective in increasing consumer purchasing power while boosting merchant sales.

Bank Alfalah also launched its Alfa BNPL service, allowing credit card holders to buy now and pay later in installments. This service is integrated with AlfaMall, Bank Alfalah’s e-commerce platform, providing users with a wide range of products to purchase with flexible payment plans.

Local actors: QisstPay, KalPay

Payment by digital wallet and X-Pay in Pakistan

In Pakistan, digital wallets are becoming an essential part of e-commerce, providing consumers with fast, secure, and convenient payment options. The most popular digital wallets include JazzCash and EasyPaisa, which dominate the market. These platforms allow users to make payments, transfer funds, and conduct online shopping transactions easily using their smartphones. Both services have millions of users and are widely accepted across e-commerce platforms in Pakistan.

JazzCash, operated by Jazz (formerly Mobilink), enables users to link their mobile numbers and CNICs to create accounts. This service allows payments through various methods, including cards, mobile accounts, and direct debits. It has grown rapidly, especially among small and medium-sized businesses, making it a key player in the digital payment ecosystem.

Similarly, EasyPaisa, launched by Telenor, is Pakistan’s first mobile wallet, with over 25 million registered accounts. It provides users with access to reliable digital financial services, facilitating payments for online shopping, bill payments, and peer-to-peer transfers. EasyPaisa integrates well with local e-commerce platforms, making it a preferred choice for many online shoppers.

NIFT ePay is another key player in the digital payment space, offering an interoperable platform that allows customers to make secure payments using digital wallets, cards, and bank accounts. This system is designed to enhance e-commerce growth by providing secure and flexible payment options for consumers and merchants alike.

• Apple Pay is currently unavailable in Pakistan. Local banks have not integrated Apple Pay, limiting its use for payments.
• Google Pay is also not supported in Pakistan. Users cannot use it for local transactions, either in-store or online.
• Samsung Pay is not accepted by local merchants or banks in Pakistan. It remains inaccessible for digital payments within the country.
• PayPal does not operate locally in Pakistan. Users can receive international payments but cannot send or receive funds domestically.

Local actors : JazzCash, EasyPaisa, NIFT ePay, UPaisa

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