•Only about 20% of the merchants have fraud concerns with card payments compared to 46% with cash.
•Merchants associate digital payments with ‘faster processing’, convenience, and security
•Study finds the use of digital payments has led to increased revenue (75%) and footfall (87%)
Karachi, Pakistan, May 19th, 2025 : Visa (NYSE: V), a world leader in digital payments, highlights a significant increase in the adoption of digital payment methods by Small and Medium Enterprises (SMEs) in Pakistan in its ‘Value of Acceptance’ study. These businesses are increasingly recognizing the transformative potential of digital payments as a strategic investment for catalyzing their business growth.
Visa’s ‘Value of Acceptance’ study surveyed SMEs across the Pakistan to understand the impact of accepting digital payments, assess the triggers and barriers associated with it versus cash, and gauge the level of openness to digital payment options among those currently accepting only cash.
Leila Serhan, Senior Vice President and Group Country Manager for the North Africa, Levant, and Pakistan (NALP) region, Visa, said: “Visa’s Value of Acceptance Study highlights that digital payment acceptance is undergoing a decisive shift from a ‘nice-to-have’ feature to a ‘must-have’ tool for business expansion and growth. Pakistan’s SMEs are embracing this change, with over 70% of card-accepting businesses reporting positive impact on revenue and footfall. Visa is proud to play a role in reshaping Pakistan’s economic landscape by providing world-class payment infrastructure, championing digital security, and driving acceptance through innovative products and solutions in the country.”
Important investment for business growth
In a business landscape where 85% respondents have faced concerns with cash payments, the Study finds that over three-quarters of respondents (78%) see digital payments as a crucial investment for growth. Merchants have confirmed that digital payment acceptance offers tremendous business impact, including customer convenience (43%), increased sales (32%), and improved efficiency (26%). The majority of the merchants see a positive impact on their business with increased revenue (75%) and footfall (87%) due to digital payments.
Barriers to digital acceptance
As the Pakistan government moves closer towards a plan to digitally transform the economy, and the surround governance on digital payment ecosystem, SME merchants feel that transparency in transaction fees (39%) and awareness around value versus price, security, and convenience would enable the transition to digital acceptance at an increased pace. The study highlights that 40% of merchants found the Point of Sale (POS) onboarding experience neutral or difficult. However, 37% of merchants still plan to acquire a POS. The study results show that complexities associated with onboarding merchants can be resolved with education and government support, specifically by providing financial education to both merchants and the broader ecosystem.
Security of digital acceptance
With the increasing shift to digital banking and payments, security becomes paramount for merchants and consumers alike, especially for those who have recently received financial access. The Value of Acceptance Study reveals that understanding the security measures of digital payments can help in driving digital adoption. Over 45% of merchants grapple with the issues of handling cash, such as robbery and embezzlement, and more than half of the respondents (58%) expect tips on security payments and the promise of secure B2B payments (58%). Interestingly, only about 20% of the merchants have fraud concerns with card payments compared to 46% of merchants dealing with cash.
Visa is supporting Pakistan’s vision to develop a strong digital payments infrastructure that meets consumers’ and businesses’ expectations for frictionless and secure payments. Using debit and credit cards, interoperable payment QR codes, and digital wallets, the adoption of digital payments has massively accelerated in the country. This is reflected in the State Bank of Pakistan’s quarterly payment systems review as of March 2025: Mobile banking apps, branchless banking wallets, and e-Money wallets collectively processed 1,450 million transactions worth PKR 24 trillion, marking a 12% increase in volume and a 28% increase in value.
About the Study
Visa commissioned 4SiGHT Research & Analytics to explore the impact of digital payments on small retailers and evaluate acceptance of digital payment options among a cash-driven sector. 4SiGHT interviewed 250 small retailers out of which 40% accepted cash payments only and 60% accepted cash and digital payments. The surveyed retailers were based in key cities of Pakistan, namely Lahore, Karachi and Islamabad. The face-to-face interviews took approximately 15 minutes and included a mix of nationalities and gender, representative of the UAE.
