1LINK and Munsalik Digital have announced a collaboration to enable microfinance institutions in Pakistan to issue PayPak debit cards through a technology platform designed to support card issuance. The announcement was made at the Annual Microfinance Conference (AMC-X) 2026, held at Mövenpick Hotel Karachi on October 7, 2026. Under the arrangement, microfinance institutions will be able to access PayPak debit card issuance through Munsalik Digital’s technology platform, with SAFCO becoming the first institution to be onboarded under the collaboration. The partnership brings together 1LINK, Pakistan’s payment systems operator behind the PayPak domestic payment scheme, and Munsalik Digital, which provides the technology platform through which participating microfinance institutions can access card issuance capabilities. The initiative aims to expand the use of debit cards within the microfinance sector, giving participating institutions a way to offer card-based payment services to their customers. The onboarding of SAFCO marks the initial implementation of the collaboration and could provide a foundation for additional microfinance institutions to adopt similar services.
PayPak is Pakistan’s domestic payment card scheme, developed to support electronic payments through a locally operated card network. Debit cards can give account holders access to electronic payment options for purchases and other supported transactions, reducing reliance on cash where card acceptance is available. For microfinance institutions, the availability of card issuance services can help extend the range of payment facilities offered to customers, including individuals and small businesses that rely on microfinance services for their financial needs. The collaboration seeks to make these capabilities accessible through a technology platform rather than requiring each participating institution to develop its own card issuance infrastructure independently. Microfinance institutions play an important role in providing financial services to individuals, entrepreneurs and small businesses that may have limited access to conventional banking facilities. Introducing debit cards into this segment can support the wider adoption of electronic payments and provide customers with additional ways to use funds held in their accounts. Card-based transactions may also help customers participate in an increasingly digital payments environment, depending on their institutions’ services and the availability of compatible payment acceptance infrastructure. However, the broader impact will depend on how many institutions adopt the service, the number of cards issued and the extent to which customers use them for everyday transactions.
Representatives from both organisations and SAFCO attended the announcement at AMC-X 2026. Those present included Syed Mohsin Ahmed, Chief Executive Officer of Munsalik Digital; Syed Sajjad Ali Shah, Managing Director of SAFCO; Bashir Khan, Chief Merchants, Schemes and Alliances at 1LINK; Muhammad Waqas Khan, Deputy Chief Executive Officer and Group Chief Financial Officer of Munsalik Digital; and Muhammad Shahzeb, Head of Banking Solutions at 1LINK. Their participation reflected the involvement of the technology provider, payment network and first participating institution in the initiative. The collaboration comes as Pakistan continues to expand its digital payment infrastructure and encourage the use of electronic transactions across different segments of the economy. Extending debit card issuance to microfinance institutions could help bring card-based payment options to customers who have traditionally depended more heavily on cash. It also highlights the role of partnerships between payment networks and technology providers in making financial services available to institutions that may not have the resources to build such systems independently.
With SAFCO becoming the first institution onboarded through the arrangement, the next stage will involve the implementation and use of the service by the participating institution and its customers. Further adoption by other microfinance institutions could widen access to PayPak debit cards across the sector. The collaboration establishes a route for microfinance providers to incorporate card issuance into their service offerings, while its longer-term contribution to financial inclusion and digital payment adoption will depend on implementation, customer uptake and continued participation from institutions across Pakistan.
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