Visa highlights commercial cards’ role in Pakistan’s SME growth

KARACHI: Visa, a world leader in digital payments, released a whitepaper highlighting the advantages of digitizing SME payments — with over $121 billion worth of SME B2B activities primed for digital transformation.

Umar S. Khan, Country Manager for Pakistan & Afghanistan, Visa, commented: “As a cornerstone of Pakistan’s economy, SMEs contribute 40 percent to the national GDP and are vital to job creation. However, despite their growth potential, many SMEs remain constrained by their reliance on cash-based transactions, which hampers efficiency and scalability.

At Visa, we recognize the transformative power of digital payments in addressing these challenges. Our latest whitepaper highlights how commercial cards can revolutionize B2B payments for SMEs, offering streamlined processes, and access to critical financial solutions.

To unlock this opportunity, we must work together to encourage widespread adoption. By partnering with government entities and banks, raising awareness, and collaborating with fintechs, we can improve access to the infrastructure SMEs need to thrive. These efforts align with Visa’s commitment to supporting Pakistan’s digital and economic agenda, fostering an inclusive ecosystem that empowers SMEs to grow, innovate, and compete locally and globally.“

In the State Bank of Pakistan’s Payment Systems Quarterly Review for the first quarter of 2025, 55.6 million payment cards were in circulation, with debit cards comprising 88% of the total.

In Pakistan’s current payment market, SMEs struggle with payment and transaction challenges rooted in legacy solutions. Often, SMEs are unaware of the availability and many benefits of commercial cards. Cumbersome application processes and compliance procedures further prohibit SMEs from transitioning to digital transactions. On the other hand, banks and financial institutions view SMEs as high-risk clients due to their lack of collateral and credit histories.

Copyright Business Recorder, 2025