HBL, 1LINK, and UnionPay Launch Co-Badged Debit Cards for Overseas Acceptance

New Co-Badged Payment Solution

Pakistani banking customers can now access international card acceptance alongside domestic payment processing following the introduction of co-badged PayPak-UnionPay debit cards. Led by Habib Bank Limited (HBL) in partnership with 1LINK and UnionPay International, the payment card combines both the local PayPak network and UnionPay International onto a single card.

The dual-network structure routes transactions based on where payments occur. When cardholders make purchases or use ATMs inside Pakistan, transactions process locally through PayPak via the 1LINK system. When spending abroad, making foreign e-commerce purchases, or withdrawing cash overseas, transactions route through UnionPay International, which is accepted in over 180 countries.

Central Bank Endorsement and Local Processing

The formal launch took place on July 15, 2026, at a ceremony in Karachi attended by State Bank of Pakistan (SBP) Governor Jameel Ahmad. The State Bank of Pakistan endorsed the initiative under its Vision 2028 strategy to position PayPak as the primary domestic payment scheme while enabling global connectivity via co-badging.

Processing domestic payments within Pakistan via 1LINK keeps transaction data local and minimizes cross-border processing costs. At the same time, integration with UnionPay International provides global merchant acceptance and foreign ATM access.

Impacted Customers and Next Steps

This development affects Pakistani bank account holders who previously held single-network PayPak cards limited to domestic use, as well as retail customers looking for one card that functions both locally and internationally.

Cardholders interested in using their debit card abroad should contact their issuing bank, such as HBL or Allied Bank, to ask about upgrading to a co-badged PayPak-UnionPay debit card. Commercial banks maintain separate rollout schedules, annual fees, card issuance charges, daily transaction limits, and foreign exchange markup rates, which are detailed in each bank's respective Schedule of Charges.