Allied Bank, UnionPay International, and Paysys Labs Unite to Revolutionize Digital Payment Security in Pakistan

In an era where digital payments are becoming the backbone of global commerce, ensuring security and convenience is paramount. Recognizing this need, three prominent players in Pakistan’s financial and technology sectors — Allied Bank Limited (ABL), UnionPay International (UPI), and Paysys Labs — have joined forces to introduce advanced tokenization technology for mobile tap-and-pay transactions. This strategic partnership is poised to transform the payment experience for millions of Allied Bank customers, enhancing both security and convenience in an increasingly cashless economy.

Empowering Customers Through Innovation

The collaboration between Allied Bank, UnionPay International, and Paysys Labs marks a significant milestone in Pakistan’s digital payment landscape. Allied Bank, one of the largest issuers of UnionPay-PayPak Co-Badge debit cards in the country, is now enabling its customers to leverage tokenization technology for secure, contactless mobile payments. This means users can make tap-and-pay transactions using their smartphones without compromising their card details, offering a seamless and user-friendly payment experience.

Tokenization works by replacing sensitive cardholder information, such as the actual card number, with a unique digital token during transactions. This token is useless if intercepted by fraudsters, thus adding an essential layer of security that protects consumers against data breaches and cyber-attacks. By embedding this technology into its mobile payment services, Allied Bank is not only prioritizing the safety of its customers but also encouraging the adoption of digital wallets and contactless payments, which have become vital in today’s fast-paced, hygiene-conscious environment.

Allied Bank, UnionPay International, and Paysys Labs Join Forces to Boost Digital Payment Security in Pakistan

In a significant move to enhance digital payment security and convenience, Allied Bank Limited (ABL), UnionPay International (UPI), and Paysys Labs have formed a strategic partnership aimed at empowering customers with advanced mobile payment solutions. This collaboration introduces tokenization technology to enable secure and seamless Mobile Tap-and-Pay transactions using UnionPay-PayPak Co-Badge Debit Cards across Pakistan.

As one of the largest issuers of UPI-PayPak Co-Badge debit cards in the country, Allied Bank is at the forefront of adopting innovative payment technologies that provide customers with a safer, more efficient way to make everyday transactions. Through this partnership, Allied Bank customers can now enjoy contactless payments on their mobile devices, allowing them to tap and pay with ease, speed, and security.

At the core of this new facility is tokenization technology, a cutting-edge security measure designed to protect sensitive cardholder information. Instead of transmitting actual card details during a transaction, tokenization replaces them with unique, randomized tokens. These tokens cannot be reverse-engineered or misused if intercepted, providing an extra layer of protection against fraud and data breaches. This innovation not only enhances customer security but also supports the growing trend of contactless payments, which have become increasingly important in the post-pandemic world.

The official launch event was held at the Paysys Labs Head Office in Karachi, where senior executives from all three organizations came together to celebrate this milestone in Pakistan’s digital payment ecosystem. The gathering underscored the importance of collaboration between financial institutions and technology providers to advance secure and convenient payment methods.

Speaking at the event, Mr. Muhammad Kamran Zeb, Group Head of Cards & Acquiring Business at Allied Bank Limited, highlighted the significance of the partnership. He said, “This partnership marks a pivotal step forward in Pakistan’s digital payment ecosystem. By adopting tokenization technology, Allied Bank reaffirms its commitment to innovation and customer-centric solutions.” His remarks emphasized the bank’s focus on leveraging advanced technologies to enhance customer experience and safeguard financial transactions.

Representing UnionPay International, Mr. Nadeem Haroon, Country Head for Pakistan, expressed pride in supporting the nation’s digital transformation efforts. “UnionPay International is proud to support Pakistan’s digital transformation journey. With HCE tokenization technology, we are enabling a safer and more efficient payment environment for customers,” he said. UnionPay’s Host Card Emulation (HCE) tokenization technology allows mobile devices to securely store and use payment credentials, ensuring that transactions are both fast and secure.

Mr. Karim Jindani, CEO of Paysys Labs, also spoke at the ceremony, emphasizing the company’s dedication to advancing digital payment infrastructure in Pakistan. “At Paysys Labs, we are dedicated to empowering digital payment systems with the latest technologies. This collaboration will elevate the payment experience for users while ensuring the highest standards of security,” he stated. Paysys Labs’ expertise in payment technology integration plays a crucial role in making this innovative solution accessible and reliable for consumers.

This partnership aligns with broader efforts to digitize Pakistan’s financial landscape by promoting secure, contactless payment methods that reduce reliance on cash and physical cards. The convenience of mobile tap-and-pay transactions, combined with the security of tokenization, offers consumers a modern and trusted way to manage their finances.

As digital payment adoption grows in Pakistan, initiatives like this partnership between Allied Bank, UnionPay International, and Paysys Labs will be critical to ensuring the safety, efficiency, and accessibility of financial services. By working together, these organizations are helping to build a robust digital economy that benefits consumers, merchants, and the wider financial ecosystem alike.

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The Strategic Partnership: Key Players and Their Roles

Each partner brings unique strengths to this alliance, creating a synergy that is greater than the sum of its parts.

Allied Bank Limited (ABL): ABL is a leading financial institution in Pakistan with an extensive network and a robust customer base. As one of the largest issuers of UnionPay-PayPak Co-Badge debit cards, ABL’s commitment to embracing cutting-edge payment technologies ensures that its customers benefit from the most secure and convenient banking solutions available.

UnionPay International (UPI): As a global payment network with extensive reach, UPI plays a critical role in driving digital payments worldwide. Its expertise in payment technology and infrastructure is crucial to enabling tokenization and ensuring interoperability across different platforms and devices. UnionPay’s HCE (Host Card Emulation) tokenization technology powers the security framework behind these mobile tap-and-pay transactions, delivering a safer payment environment for consumers.

Paysys Labs: A pioneer in digital payment innovation in Pakistan, Paysys Labs focuses on integrating the latest technological advancements into the local payments ecosystem. Their role in this partnership is to implement and maintain the tokenization system, ensuring smooth functionality, security, and compliance with international standards.

The Launch Ceremony: Celebrating a New Era in Digital Payments

The official launch of this partnership and the tokenization-enabled mobile tap-and-pay facility took place at Paysys Labs’ head office in Karachi. The event brought together senior executives from Allied Bank, UnionPay International, and Paysys Labs to mark this pivotal moment. The ceremony highlighted the shared vision of all three organizations: to drive Pakistan’s digital economy forward through innovation and secure financial solutions.

Mr. Muhammad Kamran Zeb, Group Head of Cards & Acquiring Business at Allied Bank Limited, emphasized the importance of this initiative. He stated, “This partnership marks a pivotal step forward in Pakistan’s digital payment ecosystem. By adopting tokenization technology, Allied Bank reaffirms its commitment to innovation and customer-centric solutions.” His remarks underscored the bank’s strategic focus on integrating advanced technologies that enhance security without compromising user experience.

Similarly, Mr. Nadeem Haroon, Country Head of UnionPay International Pakistan, expressed pride in supporting Pakistan’s digital transformation. He said, “UnionPay International is proud to support Pakistan’s digital transformation journey. With HCE tokenization technology, we are enabling a safer and more efficient payment environment for customers.” His statement highlighted UPI’s dedication to expanding secure digital payment infrastructure worldwide, now extended to Pakistan’s growing market.

Finally, Mr. Karim Jindani, CEO of Paysys Labs, shared his vision for the future of digital payments in Pakistan. “At Paysys Labs, we are dedicated to empowering digital payment systems with the latest technologies. This collaboration will elevate the payment experience for users while ensuring the highest standards of security.” This reflects Paysys Labs’ mission to be at the forefront of payment innovation, fostering trust and convenience for both consumers and merchants.

The Importance of Tokenization in Today’s Payment Ecosystem

Tokenization is one of the most effective security measures in the digital payment space. It addresses the growing concerns over data theft and fraud by eliminating the transmission of actual card details during transactions. Instead, a randomly generated token substitutes the card number, which can only be used within a specific context or device, rendering it useless to hackers.

This technology is particularly relevant for mobile tap-and-pay transactions, where users simply tap their phones on contactless terminals to make payments. Since these payments are quick and often conducted in public places, the risk of card details being compromised is high without tokenization. The technology’s implementation significantly reduces fraud risks and builds consumer confidence in digital payments.

Furthermore, tokenization supports compliance with global payment security standards such as PCI-DSS (Payment Card Industry Data Security Standard). This ensures that all stakeholders in the transaction process maintain rigorous security protocols to protect sensitive information.

Benefits for Allied Bank Customers and the Broader Market

The partnership’s impact extends beyond just enhanced security. For Allied Bank customers, the introduction of tokenization-enabled tap-and-pay technology means:

• Convenience: Customers can make swift, contactless payments using their mobile phones without carrying physical cards.

• Enhanced Security: Sensitive card information is never exposed during transactions, minimizing fraud risk.

• Broader Acceptance: UnionPay-PayPak Co-Badge cards are widely accepted, and tokenization facilitates smoother transactions across numerous merchants and payment platforms.

• Support for Digital Economy: This initiative aligns with Pakistan’s broader efforts to promote financial inclusion and digital payments, contributing to economic growth.

Moreover, the increased adoption of mobile and contactless payments reduces reliance on cash, which is costly to manage and poses hygiene concerns, especially in the post-pandemic era.

Challenges and the Road Ahead

While this partnership marks a huge leap forward, challenges remain in the widespread adoption of tokenization and contactless mobile payments in Pakistan. Issues such as smartphone penetration, digital literacy, and merchant acceptance need ongoing attention.

Allied Bank, UnionPay International, and Paysys Labs will need to continue educating customers and merchants about the benefits and usage of these new payment methods. Investments in infrastructure and continuous innovation will also be essential to keep pace with evolving security threats and consumer expectations.

Conclusion: A Step Toward a Digital Future

The alliance between Allied Bank Limited, UnionPay International, and Paysys Labs to implement tokenization technology in Pakistan is a landmark achievement that signals the country’s growing maturity in digital payments. By combining their expertise, these organizations are setting a new standard for secure, convenient, and modern financial transactions.

This partnership not only benefits millions of Allied Bank customers but also contributes to Pakistan’s vision of a robust, inclusive, and digitally enabled economy. As digital payment ecosystems continue to evolve, tokenization and similar technologies will be critical in building trust and security, enabling the nation to confidently embrace the future of finance.