KARACHI: Visa, a global leader in digital payments, has revealed a significant increase in the adoption of digital payment methods by Small and Medium Enterprises (SMEs) in Pakistan, as detailed in its latest Value of Acceptance study. The findings indicate that SMEs across the country increasingly view digital payments as a strategic investment for business growth and sustainability.
The study, commissioned by Visa, surveyed SMEs across Pakistan to understand the impact of digital payment acceptance, the drivers and barriers to adoption versus cash, and the openness of cash-only merchants to adopting digital payment solutions.
Digital Payments: A Catalyst for SME Growth
Leila Serhan, Senior Vice President and Group Country Manager for North Africa, Levant, and Pakistan (NALP) at Visa, said:
“Visa’s Value of Acceptance study highlights a decisive shift—digital payments are no longer just a ‘nice-to-have’ but a ‘must-have’ tool for business expansion. Over 70% of card-accepting businesses in Pakistan reported increased revenue and footfall. Visa is proud to contribute to reshaping Pakistan’s digital economy by offering secure, innovative payment infrastructure.”
In a cash-dependent landscape where 85% of SMEs reported issues with cash payments, the study found that 78% of merchants now consider digital payments a crucial investment for growth. Key benefits include:
- Customer convenience (43%)
- Increased sales (32%)
- Improved operational efficiency (26%)
Moreover, 75% of businesses reported increased revenue, and 87% reported a rise in customer footfall after adopting digital payment solutions.
Barriers Hindering Digital Payment Adoption
While digital adoption is accelerating, the study also sheds light on barriers that need to be addressed. SME merchants highlighted the following concerns:
- Lack of transparency in transaction fees (39%)
- Limited awareness of digital payment benefits
According to the findings, 40% of merchants described the Point of Sale (POS) onboarding process as neutral or difficult. Still, 37% plan to acquire a POS device in the near future. The study suggests that these challenges can be overcome through financial literacy programs, government support, and merchant-focused education.
With the expansion of digital payments, security remains a critical concern for both merchants and consumers. The study reports:
- 45% of merchants are concerned about the risks associated with handling cash, including theft and fraud.
- Only 20% expressed fraud concerns related to card payments, compared to 46% for cash.
- 58% of merchants desire better education on secure digital transactions and fraud prevention.
Visa continues to support Pakistan’s vision for a robust digital payments ecosystem, offering debit and credit cards, interoperable QR codes, and digital wallets that meet evolving consumer and business needs.
The State Bank of Pakistan’s March 2025 Quarterly Payment Systems Review reported that mobile banking apps, branchless banking wallets, and e-Money wallets collectively processed 1,450 million transactions worth PKR 24 trillion—a 12% increase in volume and a 28% increase in value, demonstrating rapid growth in digital payment adoption nationwide.
Visa commissioned 4SiGHT Research & Analytics to evaluate the impact of digital payments on small retailers and measure acceptance within the cash-dominant SME sector. The study surveyed 250 small retailers from Karachi, Lahore, and Islamabad, with 60% accepting both cash and digital payments, and 40% accepting only cash. Interviews were conducted face-to-face, lasted 15 minutes on average, and included a diverse mix of participants.
