PLASTIC MONEY IN PAKISTAN

Plastic Money business is definitely going big time here in Pakistan. In a country where two years back people have hardly heard the word plastic money or credit card, more than 7000 merchants are accepting above 140,000 cards.

It has been estimated that there are likely to be around half million potential card users in the near future. This forecasting derive credibility from the fact that more and more local and international financial institutions are exhibiting enthusiasm in this direction. This in turn reflects prospects in Pakistan market in accommodating numerous credit card competitors operating on the circuit, ensuring healthy and competitive card business deals.

MARKET SCENARIO

Although credit card was introduced in Pakistan decades ago when Habib Bank, the largest bank in Pakistan, launched its gold card, but people had hardly know about this card because of its very limited issuance. Approximately four years back, Allied Bank of Pakistan had launched its Master Card. Two years back Citibank had launched its VISA Card and that was the turning point in the history of Plastic Money in Pakistan.

Citibank had done a tremendous job to educate people of Pakistan, as well as, financial industry about credit cards and its significance in today's world. Because of very aggressive marketing and heavy investment in technology, Citibank is well deserve to be called the industry leader of Pakistan's credit card business.

After successful launch of Citibank card, Muslim Commercial Bank, Bank of America, and National Bank of Pakistan had launched their credit cards. Very soon we are expecting more local and international banks on the horizon of Pakistan's credit card business.

PLAYERS IN THE ARENA

Allied Bank of Pakistan	Master Card
American Express	AMEX Card
Bank Of America Visa Card	Master Card
Citibank N.A.	Visa Card
Diners Club International	Diners Club Card
Habib Bank Ltd.	Habib Bank Card
Muslim Commercial Bank	Master Card
National Bank of Pakistan	Visa Card -- Master Card

*In alphabetical order

• Citibank is the industry leader in credit card business here. In short span of time, Citibank had issued over 125,000 VISA cards and covers most of the potential market segment.
  
  
• Muslim Commercial Bank had launched its Master Card and it is expected that by the end of 1997, MCB card users will be over 250,000 (that makes 5% of its total account holders).
  
  
• Diners Club and AMEX are very selective in credit cards business and so far entertains a very limited market segment.
  
  
• Bank of America is the transaction processing hub for most of the local banks, including Muslim Commercial Bank, Allied Bank and National Bank of Pakistan.
  
  

Some departmental stores have also issued their own branded cards; however, these stores are operating in a very restrictive domain.

IN THE NEAR FUTURE

• Citibank will launch its Master Card.
  
  
• ANZ Grindlays will be in card business with their VISA card.
  
  
• Few other local and international bank are also interested to come into credit card business.
  
  

In short, the credit card business in Pakistan is so lucrative that it can accommodate many local and foreign banks.

TECHNOLOGY AND INFRASTRUCTURE

One of the most important features that Plastic Money offers is the technology associated with this business. Credit card business rely on very reliable and secure technology and demands very strong connectivity backbone. Although a third world country, with lot of insecurities and almost no infrastructure, Pakistan has no exception when it comes to credit card business. There are approximately 3000 Point Of Sale Terminals (POST) present on merchant's sites connected with bank host system. Inter-city connectivity are accomplish through X.25 networks.

Perhaps, it is the most important time in the history of Pakistan as the parameters of its infrastructure are coming into existence. There is an immense need of reliable wide area connectivity and this market is so huge and lucrative that it can accommodate many more industry giants. Soon the Automatic Teller Machines (ATMs) will be seen every where in Pakistan and it will require a very reliable and secure wide area connectivity setup.