Small businesses see digital payments as essential for their growth: Visa country manager

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KARACHI: Many small and medium -sized businesses in Pakistan (SMEs) have introduced digital payments as an integral investment for development, citing benefits such as rapid processing, improved security and facility, according to Pakistan and Afghanistan Omar Khan’s visa.

In a written response to news questions, Khan said, “As a signal of development, the cost of our acceptance study shows that we have accepted digital payments for more than half of the survey for more than two years.”

“In addition, about 80 80 % of traders within this segment believe that digital payment is an important investment in their business with rapid processing, better security, and more convenience for both of them, and is more convenient for both of them and their customers. Particularly in card -based transactions, it is increasing confidence in this pace.”

Khan’s comments came when the visa published the study of ‘Value of Acceptance’, which surveyed SMEs in Pakistan. There are 5 million SMEs working in Pakistan, with about 80 80 % of non -agricultural labor force uses. These businesses contribute 40 % of the country’s GDP and 25 % of total exports. According to SBP data, only 155,000 SMEs – which are only equal to 3.0 % – currently receive financial support from the banking sector. However, it is the encouraging sign that these businesses are rapidly recognizing the ability to change digital payments for their development.

The State Bank of Pakistan (SBP) review of the quarterly payment system shows a 12 % increase in volume by March 2025 and a 28 % increase in digital payments. Khan said that the rapid change towards Pakistan’s more mobile and digital economy offers a great opportunity, especially in the SME sector. SMEB2B 2B transactions are estimated at $ 255 billion, of which 85 % of the surprising of which is still in cash. The opportunity to adopt digital acceptance is more important than this. Therefore, digitalizing this place is not just a performance, it is an economic mandatory.

According to him, global research also emphasizes a compelling economic impact, pointing out that the transfer of cash from digital payments can lead to 1-2 % of GDP’s annual benefit. For five consecutive years, the only 5.0 % increase in digital payments every year can reduce the informal economy by 11-13 % and increase tax revenue.

“In a visa, we are focused on enabling this transfer towards digital so that our partners’ vast ecosystem, modern products, solutions and global skills can be accessed,” he said. “Our rapid presence in Pakistan also helps strengthen our dedication to the ongoing development of the country.

Responding to these concerns that security issues and complex air -driven processes are hindering digital payments, he noted that when cash is likely, our study shows that more than 45 % of SMEs are at risk of cash -related cash handling.

On the other hand, 45 % of respondents claim that fraud concerns with card payments are declining, which shows that the use of strong technology will reduce security risks and encourage them to get away from cash. He said the study highlights that the majority of SMEs (53 %) intends to invest in new payment technologies.

“By preferring security for more than 60 years, the visa has been living several steps ahead of fake makers and securing digital landscapes through modern technology, including artificial intelligence,” he said.

He added, “This commitment is especially clear in the last five years, in which the visa has invested more than $ 12 billion in technology globally, including measures designed to reduce fraud and enhance network safety.”

The study also lodged a complex boarding process as a barrier to adoption. In such cases, working with the policies, smooth the ship, and working with payers to improve the merchant experience can only facilitate the transfer of cash.

According to a visa report, 53 % of traders raised concerns about the costs associated with digital payments, the majority of surveyed SMEs still intend to invest in new payment technologies. This indicates a strong desire to innovate for the future.