# PayPak vs Visa vs Mastercard debit cards: which to choose

URL: https://which.pk/money/guides/paypak-vs-visa/
Author: Hassam
Updated: 17 Oct 2026

## Summary

PayPak is Pakistan's own debit card network, run by 1LINK. It is the cheapest card at big banks, Rs 2,000 to Rs 3,000 a year against Rs 2,900 to Rs 3,800 for an entry Visa card, as of July to December 2026. A plain PayPak card works only in Pakistan. To pay foreign websites or use a card abroad you need Visa, Mastercard or a co-badged PayPak card, and banks charge about 4% to 4.5% on each foreign transaction, plus 0.5% advance tax for filers (1% for non-filers).

## Key facts

- PayPak annual fee (Jul–Dec 2026): Rs 2,000–3,000
- Entry Visa annual fee (Jul–Dec 2026): Rs 2,900–3,800
- Bank fee abroad (Jul–Dec 2026): 4%–4.5% a transaction
- PayPak abroad: Only if co-badged

PayPak is Pakistan's own debit card network, and it is the cheapest card at most big banks: **Rs 2,000 to Rs 3,000 a year, against Rs 2,900 to Rs 3,800 for an entry-level Visa card**, as of their July to December 2026 schedules. The catch is that a plain PayPak card works only in Pakistan. If you pay foreign websites, subscriptions or travel abroad, choose Visa, Mastercard or a co-badged PayPak card.

**HBL debit card, a year:** PayPak Rs 2,000 · Visa Rs 3,000 (Plus FED/sales tax. HBL schedule of charges, July to December 2026)

## What is PayPak?

PayPak is Pakistan's only domestic payment scheme. It is owned and run by **1LINK** and was launched under the aegis of the State Bank of Pakistan. Pakistan was the 28th country to have its own scheme, 1LINK says.

PayPak payments are routed inside Pakistan, so your card data doesn't leave the country. The cards have a chip and work with tap-and-pay. PayPak's website lists **16.8 million cards** in use, issued by 36 banks and 7 electronic money institutions (EMIs), as of 17 Oct 2026.

PayPak cards are used far less than their number suggests. In a December 2025 speech, SBP Governor Jameel Ahmad said PayPak made up more than 25% of Pakistan's 53 million debit cards but only 6% of card use.

## Where does a PayPak card work?

In Pakistan, almost everywhere a debit card does. PayPak says its cards work at **all ATMs and all card machines (POS) in Pakistan**, and at many online shops.

Abroad, it depends on the card:

- **PayPak only (mono-badge):** for use in Pakistan only, PayPak says.
- **Co-badged PayPak:** a card with PayPak and a second network (Mastercard, UnionPay or JCB) on it. PayPak says these work both in Pakistan and abroad.
- **Visa or Mastercard:** accepted abroad and by foreign websites.

Co-badged cards are new. Faysal Bank launched a PayPak and Mastercard card on 2 Dec 2025, a month after a PayPak and UnionPay card, the SBP Governor said. Several banks now list PayPak and UnionPay co-badged cards, as the table below shows.

## PayPak vs Visa vs Mastercard: how do the fees compare?

These are annual fees for each bank's cheapest PayPak card and its entry-level Visa and Mastercard debit cards. All are from the banks' schedules of charges for **1 Jul to 31 Dec 2026**, and FED or sales tax is added on top (six of the seven schedules say so; we didn't confirm it for Allied Bank).

| Bank | PayPak | Visa | Mastercard | PayPak + UnionPay |
|---|---|---|---|---|
| HBL | Rs 2,000 | Rs 3,000 (Visa Chip) | Rs 3,000 (Standard) | Rs 2,700 |
| UBL | Rs 2,000 | Rs 2,900 (Premium) | Rs 2,900 (Premium) | Not listed |
| MCB | Rs 2,200 (Classic) | Rs 3,300 (Silver) | None in schedule | Not listed |
| Allied Bank | Rs 2,200 (Basic, co-badged with UnionPay) | Rs 3,000 (Classic) | None in schedule | Rs 2,900 (Classic) |
| Meezan Bank | Rs 2,500 | Rs 3,500 (Classic) | Rs 3,500 (Classic) | Not listed |
| Bank Alfalah | Rs 3,000 | Rs 3,800 (Classic) | Not checked | Rs 3,000 (Classic) |
| NBP | Rs 2,000 (Classic) | Not checked | Not checked | Rs 2,700 |

So PayPak saves you about **Rs 800 to Rs 1,100 a year** at HBL, UBL, MCB, Meezan and Bank Alfalah. At HBL, UBL and Meezan, Visa and Mastercard cost the same.

A few details that change the sums:

- **NBP** charges Rs 760 to issue a PayPak Classic card, then Rs 2,000 a year. Its PayPak and UnionPay card is Rs 800 to issue, then Rs 2,700 a year.
- **Meezan** charges the annual fee only on activated cards. Meezan Digital Account holders get their first card free to issue, choosing Visa Classic, Mastercard Classic or PayPak.
- **Bank Alfalah** waives the annual fee on Kamyab Karobar accounts if your 6-month average balance is Rs 50,000 or more.
- **Replacing a lost card** at HBL costs Rs 600 for PayPak and Rs 850 for Visa or Mastercard Standard. A supplementary PayPak card has no annual fee at HBL, against Rs 550 for Visa.

For ATM, IBFT and SMS alert charges, see [bank charges compared](/money/guides/bank-charges-pakistan/).

## What does it cost to use a debit card abroad?

Inside Pakistan, card payments are free at HBL and Meezan. Abroad or on a foreign website, every bank below adds a fee to each transaction, under its July to December 2026 schedule:

| Bank | Foreign purchase (shop or online) | Foreign ATM withdrawal |
|---|---|---|
| HBL | 4% (HBL lists this for card machines abroad) | 4% or Rs 300, whichever is higher |
| UBL | 4.5% or Rs 150, whichever is higher | 4.5% or Rs 150, whichever is higher |
| MCB | 4.4% or Rs 100, whichever is higher | 4.5% or Rs 100, whichever is higher |
| Allied Bank | 4% or Rs 100, whichever is higher | 4% or Rs 100, whichever is higher |
| Meezan Bank | 4% | 4% or Rs 600, whichever is higher |

These fees come on top of the exchange rate. Meezan says it converts at the inter-bank or open-market rate, as regulations require. Checking your balance at a foreign ATM costs Rs 225 to Rs 300.

There is also **advance tax** under section 236Y of the Income Tax Ordinance on money sent abroad by card: **0.5% if you are on the Active Taxpayer List (ATL), 1% if you are not**, per FBR's rate card updated to 30 Jun 2026.

**Meezan's schedule shows a different tax rate:** Meezan's July to December 2026 schedule says advance tax on international transactions is 5% for filers and 10% for non-filers, and a Bank Alfalah virtual card row says the same. FBR's rate card, updated to 30 June 2026 for the Finance Act 2026, says 0.5% and 1% under section 236Y. We follow FBR, because the tax rate is set by law, not by the bank. See [filer vs non-filer](/business/guides/filer-vs-non-filer/) for other rates.

If you only need a card for online subscriptions, compare the [virtual cards in Pakistan](/money/guides/virtual-card-pakistan/).

## What extras does a PayPak card come with?

PayPak lists these benefits for its cardholders, as of 17 Oct 2026:

- **Discounts** at over 30,000 merchant locations in 158 cities, through the Golootlo app. PayPak cardholders get a free Gold subscription.
- **10% off** PIA domestic and international flights, and 10% off AirSial domestic flights.
- **Life cover of Rs 1 lakh** for active cardholders aged 18 to 65.
- **Fraud protection of up to Rs 30,000** per card a year, for misuse of a lost or stolen card and fraudulent online transfers, bill payments and top-ups.

We haven't compared the banks' own discounts on Visa and Mastercard cards here.

## Which debit card should you choose?

- **You only use your card in Pakistan:** get PayPak. It costs the least, and PayPak says it works at every ATM and card machine in the country.
- **You pay foreign websites or travel:** get Visa or Mastercard, or a co-badged PayPak card if your bank offers one. At HBL, UBL and Meezan the two cost the same, so pick either.
- **You spend a lot in dollars:** look at a [dollar account](/money/guides/dollar-account-pakistan/) with a foreign currency (FCY) debit card.

Check that international use is switched on before you pay abroad: UBL charges Rs 100 when a foreign or online payment is declined because that channel is off.

More guides: [Banking & Payments](/money/banking/), [best bank in Pakistan](/money/guides/best-bank-in-pakistan/), [credit cards compared](/money/guides/credit-cards-pakistan-compared/), [Easypaisa vs JazzCash](/money/guides/easypaisa-vs-jazzcash/), [Asaan account](/money/guides/asaan-account/), [Money](/money/).

## Questions people ask

### PayPak vs Visa card: which is better?

PayPak is cheaper: Rs 2,000 to Rs 3,000 a year at big banks, against Rs 2,900 to Rs 3,800 for an entry Visa card, in their July to December 2026 schedules. But a plain PayPak card works only in Pakistan. Choose Visa or Mastercard if you pay foreign websites or travel.

### Can I use a PayPak card abroad?

Only if it is co-badged with Mastercard, UnionPay or JCB. PayPak says its single-brand (mono-badge) card is for use in Pakistan only.

### What is the difference between PayPak and Mastercard?

PayPak is Pakistan's domestic card scheme, run by 1LINK, and keeps payments inside Pakistan. Mastercard is an international network, so it also works abroad and on foreign websites. At HBL a Mastercard Standard debit card costs Rs 3,000 a year and a PayPak card Rs 2,000, plus tax (July to December 2026 schedule).

### PayPak vs UnionPay: which is better?

Several banks now sell PayPak and UnionPay on one co-badged card, which works in Pakistan and abroad. In their July to December 2026 schedules, HBL charges Rs 2,700 a year for it, Rs 700 more than a plain PayPak card, and Allied Bank Rs 2,900 for the Classic, plus tax.

### What discounts do PayPak cards get?

PayPak lists deals at over 30,000 merchant locations in 158 cities through the Golootlo app, with a free Gold subscription for PayPak cardholders. It also lists 10% off PIA flights and 10% off AirSial domestic flights.

## Sources

- [PayPak (products and services)](https://1link.net.pk/products-services/paypak), 1LINK (accessed 17 Oct 2026)
- [About PayPak](https://paypak.net.pk/about-us), PayPak (1LINK) (accessed 17 Oct 2026)
- [PayPak home page (PayPak footprint)](https://paypak.net.pk/), PayPak (1LINK) (accessed 17 Oct 2026)
- [PayPak Standard](https://paypak.net.pk/paypak-standard), PayPak (1LINK) (accessed 17 Oct 2026)
- [Strengthening and modernising Pakistan's domestic payments ecosystem (SBP Governor's speech, 2 Dec 2025)](https://www.bis.org/review/r251211b.htm), Bank for International Settlements (accessed 17 Oct 2026)
- [Schedule of Bank Charges, July to December 2026](https://www.hbl.com/assets/documents/Schedule_of_Bank_Charges_for_July_to_December_2026_%E2%80%93_English.pdf), HBL (accessed 17 Oct 2026)
- [UBL Schedule of Charges, July to December 2026](https://ubldigital.com/portals/0/Pdf/UBL-SOC-July-to-December-2026.pdf), UBL (accessed 17 Oct 2026)
- [MCB Schedule of Bank Charges, July-December 2026](https://www.mcb.com.pk/assets/documents/SOBC-July-December-2026-English.pdf), MCB Bank (accessed 17 Oct 2026)
- [Schedule of Charges, July to December 2026](https://www.meezanbank.com/wp-content/themes/mbl/downloads/home-downloads/SOC-ENG-Jul-Dec-2026.pdf), Meezan Bank (accessed 17 Oct 2026)
- [Schedule of Charges, Jul-Dec 2026, Conventional Banking](https://www.abl.com/wp-content/uploads/2026/06/Schedule-of-Charges-Jul-Dec-2026-Conventional-Banking.pdf), Allied Bank (accessed 17 Oct 2026)
- [Schedule of Bank Charges, July to December 2026 (conventional)](https://prodbaf.blob.core.windows.net/data/Schedule%20of%20Charges%20July%20-%20Dec%202026%20(conventional).pdf), Bank Alfalah (accessed 17 Oct 2026)
- [Schedule of Bank Charges, July to December 2026](https://nbp.com.pk/Rates-Charges/Schedule-of-Bank-Charges-Jul-to-Dec-2026.pdf), National Bank of Pakistan (accessed 15 Oct 2026)
- [Withholding Income Tax Rate Card, updated up to June 30, 2026](https://download1.fbr.gov.pk/Docs/202681113864992WithholdingTaxRatesCard2027.pdf), Federal Board of Revenue (accessed 17 Oct 2026)