The Value of Acceptance study highlights a rising
trend among Pakistani merchants towards
adopting card and mobile payment solutions
Staff Reporter
Karachi: A new study by Visa has revealed that 78 percent of small and medium-sized enterprises (SMEs) in Pakistan consider digital payments a crucial investment for business growth. The Value of Acceptance study highlights a rising trend among Pakistani merchants towards adopting card and mobile payment solutions as a means to improve customer service, boost sales, and enhance operational efficiency.
According to the study, businesses accepting digital payments reported a 75 percent increase in revenue and an 87 percent rise in customer footfall.
Merchants Prefer Digital for Speed and Security
The study found that only 20 percent of merchants expressed fraud concerns with card payments, compared to 46 percent who cited issues with handling cash, such as theft or embezzlement. Merchants associated digital payments with faster processing, convenience, and improved security.
Digital Shift Seen as Strategic Business Move
In a business environment where 85 percent of merchants reported challenges with cash transactions, the shift to digital is viewed as more than just a trend. The study showed that merchants experience notable benefits from going cashless, including enhanced customer convenience (43 percent), increased sales (32 percent), and better operational efficiency (26 percent).
Barriers to Wider Digital Adoption RemainDespite the gains, some hurdles to full digital integration persist. About 39 percent of merchants expressed the need for greater transparency in transaction fees, while 40 percent rated the Point of Sale (POS) onboarding experience as neutral or difficult. However, 37 percent of those not currently using POS systems indicated plans to adopt one in the near future.
The study emphasized the importance of financial education and policy support to ease the transition for merchants and accelerate the adoption of digital payments.
Security Remains a Top Concern
With the shift to digital payments, the need for strong security protocols has become a priority for merchants and customers alike. More than 58 percent of respondents said they expect guidance on secure transactions and safer B2B payments. The study noted that improving understanding of digital security measures could further drive adoption.
Rapid Growth in Digital Transactions
Reflecting the country’s growing appetite for cashless solutions, the State Bank of Pakistan reported that, as of March 2025, mobile apps, branchless banking, and e-money wallets processed 1,450 million transactions worth PKR 24 trillion. This marks a 12 percent increase in volume and a 28 percent rise in transaction value compared to the previous quarter.
Survey Scope
The study, commissioned by Visa and conducted by 4SiGHT Research & Analytics, surveyed 250 small retailers in Karachi, Lahore, and Islamabad. Of those surveyed, 60 percent accepted both cash and digital payments, while 40 percent accepted cash only. The research focused on gauging the impact, barriers, and opportunities associated with digital payment adoption in Pakistan’s SME sector.
