The State Bank of Pakistan (SBP) has formally notified 1LINK (Private) Limited as a Designated Payment System (DPS) under the authority of Section 4(1) of the Payment Systems & Electronic Funds Transfer Act, 2007. This milestone designation underscores SBP’s ongoing efforts to build a stronger, more resilient digital financial ecosystem while reinforcing trust in Pakistan’s payment infrastructure.
As a DPS, 1LINK is entrusted with greater responsibility to ensure the resilience, reliability, and security of payment services across the country. The new status positions 1LINK to not only safeguard transaction integrity but also expand its role in fostering innovation, supporting fintech collaborations, and driving business growth in the digital economy.
1LINK, owned by a consortium of 11 banks, has long been recognized as a pioneer in Pakistan’s payment systems landscape. It was the country’s first Payment System Operator (PSO) and Payment Service Provider (PSP), and now it has become the first institution to be granted formal designation as a PSO under the SBP framework. This recognition reflects both its track record and its potential to support Pakistan’s shift toward inclusive, technology-driven financial services.
The company operates as the largest switch and payment system in the country, delivering a comprehensive suite of services. These include ATM switching, the 1BILL platform for utility and other bill payments, Inter-Bank Funds Transfer (IBFT), Fraud Risk Management solutions, and Switch Dispute Resolution mechanisms. Its role also extends to enabling international payment schemes, supporting PayPak—the country’s domestic card payment scheme—and powering the Sohni Dharti Remittance Program designed to encourage formal remittance inflows.
The DPS notification strengthens 1LINK’s mandate to deepen collaboration with SBP, financial institutions, and fintech companies. By leveraging its established infrastructure and expanding partnerships, 1LINK will help accelerate financial inclusion and customer adoption of digital channels. This step is particularly significant in a country where reliance on cash remains high, and digital penetration continues to grow alongside mobile and internet adoption.
The appointment of 1LINK as a Designated Payment System also signals a new phase in the regulatory and institutional framework governing Pakistan’s digital economy. SBP’s focus on designating key payment system operators reflects its proactive approach to ensuring oversight and risk mitigation in a sector that is rapidly expanding. At the same time, it provides recognized institutions like 1LINK with the regulatory backing needed to scale services, expand accessibility, and strengthen consumer confidence in digital payments.
Industry observers note that this development will further boost confidence among both consumers and businesses, encouraging greater usage of electronic transactions in everyday life. With services such as IBFT and PayPak already gaining traction, 1LINK is expected to play a pivotal role in bridging traditional banking with modern digital solutions, creating a more seamless financial experience for millions of users.
By empowering 1LINK with DPS status, SBP has not only reinforced trust in the digital payments infrastructure but also taken another significant step toward building a sustainable, inclusive, and digitally connected financial ecosystem for Pakistan.
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