PayPak vs Visa vs Mastercard debit cards: which to choose

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.

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).

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.

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:

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.

If you only need a card for online subscriptions, compare the virtual cards in 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 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.

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