Munsalik Digital (Pvt) Ltd has partnered with 1LINK (Pvt) Limited to enable PayPak debit card services for organisations operating in Pakistan’s microfinance sector. Announced on October 8, the collaboration will allow Munsalik Digital’s member organisations to disburse funds directly to clients through PayPak debit cards, providing access to money through automated teller machines (ATMs) across the country. The initiative combines Munsalik Digital’s technology platform with 1LINK’s national payment infrastructure to facilitate card-based disbursements and expand the payment options available to microfinance institutions and their clients.
Under the arrangement, SAFCO Microfinance Company will become the first member organisation to onboard the service. Its participation marks the initial implementation of the collaboration, with the service designed to enable clients to access disbursed funds through PayPak debit cards rather than relying exclusively on other payment and cash-distribution channels. Card-based disbursements can provide recipients with an additional way to withdraw money at ATMs, depending on card activation, network availability and the applicable service arrangements. For microfinance providers, integrating debit card services into their existing operations can also help establish a more structured approach to distributing funds and offering clients access to formal payment infrastructure.
The partnership brings together two different elements of Pakistan’s financial technology ecosystem. Munsalik Digital provides the technology platform through which its member organisations can support digital financial services, while 1LINK operates payment infrastructure connecting participating financial institutions and payment channels. PayPak, Pakistan’s domestic payment card scheme, provides the card network through which eligible cardholders can access supported services. Combining these capabilities can help microfinance organisations introduce card-based disbursements without having to build an independent payment network. The announcement, however, did not disclose the expected number of beneficiaries, the transaction volumes anticipated under the arrangement, or a timeline for onboarding additional member organisations.
The collaboration also highlights the growing role of digital payment infrastructure in microfinance, particularly for institutions serving individuals and communities that may have limited access to conventional banking services. Providing debit cards can give clients another option for accessing their funds and may reduce the need to travel to specific disbursement locations. Wider access to ATMs can be particularly useful for recipients in areas where alternative financial service points are limited, although actual convenience will depend on the availability of nearby ATMs and associated fees. As SAFCO Microfinance Company begins onboarding the service, the initiative’s broader impact will depend on adoption by other member organisations, the reliability of card services and the ability of clients to use the system confidently. The partnership represents an additional channel for delivering microfinance funds digitally and connecting more recipients with Pakistan’s formal payment infrastructure.
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