Visa and Euronet Partner to Drive Real-Time Clearing and Expand Digital Payment Acceptance in Pakistan
Visa, the global leader in digital payments, has officially partnered with Euronet Pakistan, the country’s largest acquirer processor, to modernize Pakistan’s payment infrastructure. The collaboration will introduce Visa Settlement Messaging Service (SMS) — a groundbreaking global initiative that will bring real-time clearing and settlement to Pakistan’s Point-of-Sale (POS) acquiring ecosystem.
This step is expected to revolutionize the way banks, payment processors, and merchants handle card transactions by offering instant clearing, faster settlements, and greater transparency across the payment value chain.
What the Partnership Means for Pakistan’s Digital Payment Industry
The partnership between Visa and Euronet Pakistan is a landmark moment in the country’s journey toward a cashless economy. It aligns with Pakistan’s growing adoption of digital banking and fintech solutions, especially after the rise in POS usage and QR payments during recent years.
Under the new Visa SMS system, clearing messages will be sent in real time rather than through the traditional batch-based method. This will allow transactions to be cleared immediately once they are authorized, significantly reducing processing delays and improving liquidity for merchants.
Understanding Visa SMS (Settlement Messaging Service)
Visa SMS, short for Settlement Messaging Service, is a next-generation digital payment innovation that introduces real-time clearing messages between POS Acquirers, Acquirer Processors, and the Visa Network.
Traditionally, payment clearing relied on batch-based offline systems that processed transactions at specific intervals. Visa SMS changes this by sending clearing messages instantly when a payment is authorized. This ensures merchants and financial institutions receive instant confirmation of settlement, enabling faster fund availability and more transparent reconciliation.
The service is part of Visa’s global modernization efforts aimed at upgrading the core infrastructure of acquiring networks to keep up with rapid advancements in digital payment technology.
How Visa and Euronet Pakistan Will Implement Real-Time Clearing
As Visa’s strategic enablement partner, Euronet Pakistan will lead the rollout of real-time clearing solutions in the local market. The company will work with banks, financial institutions, and POS acquirers across the country to integrate the Visa SMS system seamlessly into their existing networks.
The implementation will involve:
- Technical integration and readiness across acquiring banks and processors.
- Testing and certification of the real-time clearing module.
- Nationwide rollout and onboarding of local POS networks.
- Merchant awareness campaigns to encourage adoption.
Euronet will also play a key role in helping smaller banks and fintech service providers upgrade their systems to handle real-time clearing messages efficiently.
Benefits of Visa SMS for Banks, Merchants, and Customers
The new system offers several benefits across the payment chain — from banks and acquirers to merchants and customers.
1. Faster Settlement for Merchants
Merchants will now receive payments in their accounts more quickly. The delay caused by batch processing will be eliminated, improving cash flow management and liquidity.
2. Real-Time Clearing Transparency
Each transaction will generate an instant clearing message, allowing both the acquirer and Visa network to track and verify settlements in real time.
3. Fewer Operational Errors
With automated reconciliation and digital reporting, errors and discrepancies between authorization and settlement will be reduced, enhancing reliability.
4. Improved Efficiency for Banks and Processors
Banks and processors will be able to manage liquidity and float more effectively, while also offering value-added services to their merchant clients.
5. Greater Trust in Digital Payments
Real-time transparency builds confidence among merchants and consumers, encouraging a shift away from cash-based transactions to digital methods like Visa debit and credit cards.
Official Statements from Visa and Euronet Pakistan
Kashif Gaya, CEO of Euronet Pakistan, emphasized the company’s commitment to enabling this transformation:
“As Pakistan’s largest acquiring processor, our role as the key market enabler for real-time clearing underscores our dedication to empowering acquirers, modernizing payment infrastructure, and driving the industry’s shift toward faster, smarter, and more transparent payment processing. This initiative will also accelerate merchant onboarding and expand acceptance, particularly among SMEs and underserved segments.”
Mohamed Mousa, Vice President of Euronet and Managing Director for the Middle East, Africa, and Pakistan, highlighted the initiative’s regional impact:
“We are dedicated to driving digital payment innovation across the Middle East, Africa, and Pakistan. Following the successful implementation in Pakistan, we plan to extend this initiative to other countries in the region. Real-time clearing will deliver faster, more secure, and transparent payments, boosting operational efficiency and supporting sustainable economic growth.”
Umar Khan, Visa’s Country Manager for Pakistan and Afghanistan, called the partnership a vital step in strengthening Pakistan’s digital economy:
“This upgrade streamlines acquiring flows with faster settlement, fewer exceptions, and simplified reconciliation — giving merchants quicker access to funds and reducing operational overhead. It strengthens cash flow for small and medium businesses and helps acquirers manage liquidity more efficiently.”
Why Real-Time Clearing Matters for Pakistan
In Pakistan, the majority of digital payment settlements still rely on batch processes that can take hours or even days to complete. This causes delays in merchant payouts, creates reconciliation issues, and limits trust among small business owners.
The Visa–Euronet collaboration directly addresses these challenges by providing a real-time, automated system that ensures:
- Instant payment confirmation.
- Reduced settlement delays.
- Simplified dispute handling.
- Better financial visibility for businesses.
The move will also support the State Bank of Pakistan’s (SBP) broader goal of promoting digital payment acceptance under its National Payment Systems Strategy.
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Boosting SME Growth Through Faster Settlements
One of the biggest beneficiaries of this new payment infrastructure will be Small and Medium Enterprises (SMEs).
Faster settlements mean that small business owners will receive funds directly into their accounts soon after a sale, improving cash flow and allowing for quicker reinvestment in operations.
Additionally, transparent real-time reconciliation will reduce accounting complexity for businesses that rely on high transaction volumes, such as retailers, fuel stations, and restaurants.
Euronet’s Role in Modernizing Pakistan’s Payment Ecosystem
Euronet Pakistan already operates as the largest acquirer processor in the country, managing hundreds of thousands of POS terminals and enabling transactions for numerous banks and merchants.
Through this partnership, Euronet will:
- Facilitate real-time integration with Visa’s global systems.
- Upgrade local POS infrastructure to support instant clearing.
- Train partner banks and fintechs for smoother adoption.
- Expand merchant onboarding programs to increase digital payment acceptance nationwide.
The company’s expertise and local reach make it the ideal strategic partner for Visa’s digital transformation initiatives in Pakistan.
Driving Financial Inclusion and Digital Growth
Beyond efficiency, the Visa–Euronet partnership also supports financial inclusion by expanding digital payment acceptance in sectors and regions that still depend heavily on cash.
By introducing faster settlement times and simplified onboarding, more merchants — especially in semi-urban and rural areas — will find it practical to join the formal financial system.
This transformation is expected to enhance consumer trust, reduce cash dependency, and contribute to Pakistan’s long-term goal of building a digital economy powered by real-time infrastructure.
Regional Impact Beyond Pakistan
While Pakistan is the first country in South Asia to launch Visa’s Settlement Messaging Service, Euronet has confirmed plans to expand this model to other markets in the Middle East and Africa.
This cross-border collaboration will position Pakistan as a regional leader in payment innovation, paving the way for neighboring markets to adopt similar real-time clearing frameworks.
The Future of Real-Time Payments in Pakistan
Experts predict that the successful rollout of Visa SMS will encourage further integration between banks, fintechs, and payment gateways, laying the groundwork for a real-time payments ecosystem across the country.
In the coming years, Pakistan could see:
- 24/7 merchant settlement services.
- Full integration with Raast, the instant payment system by SBP.
- Growth in e-commerce transactions.
- Reduced reliance on physical cash for daily business.
The Visa–Euronet partnership represents a major milestone in this journey.
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Conclusion About Visa and Euronet Partner to Drive Real-Time Clearing:
The Visa and Euronet partnership to introduce real-time clearing in Pakistan marks a defining moment for the country’s digital payment evolution. By replacing slow, manual clearing cycles with instant electronic processes, the initiative enhances efficiency, transparency, and trust across the financial sector.
From small businesses to large enterprises, every participant in Pakistan’s payment ecosystem stands to benefit from faster settlements, reduced errors, and improved liquidity.
This collaboration demonstrates both companies’ commitment to building a modern, inclusive, and future-ready digital economy, setting a new benchmark for payment innovation not just in Pakistan, but across the region.
Visa and Euronet Partner to Drive Real-Time Clearing FAQs
1. What is the Visa and Euronet Pakistan partnership about?
It’s a collaboration to introduce Visa’s real-time Settlement Messaging Service (SMS) in Pakistan, enabling instant clearing and faster fund settlements.
2. How will Visa SMS benefit merchants in Pakistan?
Merchants will receive payments faster, enjoy transparent reconciliation, and experience fewer delays in transaction settlements.
3. When will Visa SMS be launched in Pakistan?
Implementation is underway, with Euronet leading market integration. Full rollout is expected across major banks and POS acquirers in 2026.
4. Will this help small businesses?
Yes, small and medium enterprises (SMEs) will benefit from improved cash flow and quicker access to funds after customer transactions.
5. What’s next after Pakistan’s launch?
Following Pakistan, Visa and Euronet plan to expand the real-time clearing system to other countries in the Middle East and Africa.
