Visa (NYSE: V), a global leader in digital payments, has released a whitepaper showcasing the benefits of digitizing SME payments. Over $121 billion worth of SME B2B activities are set for digital transformation.

Umar S. Khan, Country Manager for Pakistan & Afghanistan at Visa, remarked, “SMEs are crucial to Pakistan's economy, contributing 40% to the GDP and driving job creation. Despite their potential, many SMEs still rely on cash-based transactions, which limit efficiency and scalability.”

According to Visa, digital payments can address these challenges. “Our whitepaper reveals how commercial cards can transform B2B payments for SMEs, streamlining processes and providing access to essential financial solutions,” said Khan.

By collaborating with government entities, banks, and fintechs, Visa aims to improve access to necessary infrastructure for SMEs.

In the State Bank of Pakistan’s Payment Systems Quarterly Review for Q1 2025, 55.6 million payment cards were in circulation, with debit cards comprising 88% of the total.

Currently, 85% of Pakistan’s estimated $255 billion in B2B payment flows are cash-based, highlighting significant inefficiencies. Only 15% of SME B2B payments are digital, indicating a gradual shift towards digital channels. Despite high card transaction volumes for consumers and small businesses, much activity is still limited to cash withdrawals.

SMEs in agriculture, retail, and manufacturing dominate payables in Pakistan. The IT industry also processes substantial B2B payments, mainly for international transactions.

The whitepaper notes that SMEs are primed for digitization, presenting a significant opportunity for commercial card solutions. The top 8% of SMEs account for 60% of total SME payables, while small-value transactions contribute around $6 billion.

Commercial cards offer interest-free working capital, simplified cross-border trade, business credit building, and data-rich insights, addressing bottlenecks to SME growth. They provide convenient payment options, real-time expense tracking, efficient processing, and granular spending controls.

Visa recommends a robust commercial card product suite with value-added services to enhance convenience, efficiency, flexibility, and spending control for SMEs. Issuers can gain from new B2B payment streams and valuable customer data for improved segmentation and product optimization.
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