Top 5 Payment Gateways in Pakistan

TLDR

If I were building a formal online business in Pakistan today, I would shortlist PayFast, HBLPay Checkout, and Bank Alfalah IPG first. XPay makes sense if you need onsite checkout and routing flexibility, while PayPro works better if you want invoicing and over-the-counter collections alongside your gateway. Read on if you are weighing bank-backed acquiring against local PSP scale or a more flexible payments layer.

For Pakistan-based online merchants, a payment gateway is not just a checkout tool. It determines whether transactions complete, how long integration takes, when you get paid, and how many customers abandon their carts.

Here are five options Pakistani merchants usually evaluate:

1. XPay
2. PayFast
3. HBLPay Checkout
4. Bank Alfalah IPG
5. PayPro

1) XPay

XPay is a payments layer built by PostEx that emphasizes onsite checkout, dynamic routing across multiple acquirers, and developer control. It is not a bank. It sits on top of whatever merchant IDs and acquiring relationships you already have (or ones it helps set up).

What stands out

• Transparent pricing at 0.3% per transaction for Shopify and Magento integrations. Custom web or app integrations require a sales conversation. There are no setup fees or annual charges listed on their pricing page.
• Onsite embedded checkout with no redirect. Domino’s Pakistan reports that 40% of their customers now use tokenized repeat purchases through XPay’s embedded flow.
• Dynamic routing between multiple bank gateways based on card type and BIN. PriceOye, a major Pakistani electronics retailer, says this reduced their gateway fees by roughly 30%.
• Payment methods: Visa, Mastercard, PayPak debit/credit cards, bank transfers, wallets (EasyPaisa, JazzCash), and Google Pay.
• Integration: SDKs for React Native, Flutter, Kotlin, and Swift. Plugins for Shopify and WooCommerce. REST API for custom builds.
• Security: PCI-DSS Level 1 certified. Tokenization for recurring billing. XShield fraud detection using email, phone, BIN, IP, and card fingerprint analysis.
• Other features: Payment links for chat-based selling (WhatsApp, Instagram), subscription/recurring billing, bank-specific discount triggers.

What to watch

• The 0.3% rate is XPay’s fee on top of whatever the underlying acquirer charges. The total cost per transaction depends on which bank MID processes the payment. I would ask for a blended rate estimate for my specific volume and card mix.
• XPay is relatively new compared to bank-backed gateways. Their long-term support and dispute resolution track record is shorter.
• Settlement timelines depend on the acquiring bank behind your MID, not on XPay itself.

2) PayFast

PayFast (gopayfast.com) is a State Bank of Pakistan licensed and regulated Payment System Operator / Payment Service Provider (PSO/PSP). It was the first payment gateway in Pakistan to receive commercial approval from SBP under the PSO/PSP framework.

What stands out

• Regulatory status: Fully licensed PSO/PSP under SBP. This matters because unlicensed gateways in Pakistan face an uncertain regulatory future.
• Self sign-up process: Paperless, digital onboarding. No branch visits required.
• Payment methods: Debit/credit cards (Visa, Mastercard, PayPak), bank account transfers from 12+ partner banks, wallets (EasyPaisa, JazzCash, UPaisa, JS Zindagi), and QR payments via UnionPay International partnership.
• Active bank partners: Al Baraka, Bank AL-Habib, Habib Metro, Faysal Bank, Bank Alfalah, Bank Islami, Askari Bank, NRSP, Allied Bank, Meezan Bank, JS Bank, and others.
• Integration plugins: WooCommerce, Shopify, Magento, OpenCart, WHMCS, PrestaShop, and CS-Cart.
• Product range: Checkout, POS (PayPOS), payment links, and billing/invoicing for recurring collections.
• Security: PCI-DSS compliant with a proprietary fraud monitoring solution called Guardian.

What to watch

• PayFast does not publish a flat transaction fee on their website. Commercial terms are negotiated per merchant based on volume and category. I would ask for a written schedule of fees before integrating.
• Being an SBP-licensed PSP is a strength, but it also means PayFast must comply with evolving SBP directives, which can occasionally change settlement processes or merchant requirements.
• I would verify which specific bank account types (sole proprietor vs. corporate) qualify for the fastest onboarding.

3) HBLPay Checkout

HBLPay Checkout is the e-commerce payment platform from Habib Bank Limited, Pakistan’s largest bank by branch network with over 1,700 branches and 20 million customers. It uses CyberSource (a Visa solution) as its payment processor.

What stands out

• Payment methods: Visa, MasterCard, UnionPay International, and PayPak cards (all 3D Secure with OTP). Account-based payments from HBL and partner banks. Wallet payments. Raast QR is listed as coming soon.
• Multicurrency support: PKR, USD, EUR, GBP, AED, SAR, SGD, and CAD. This is broader than most local gateways.
• Settlement: Maximum two working days from transaction date to your HBL bank account.
• Integration: Free plugins for Magento, Shopify, and WooCommerce. Code snippets for PHP and .NET. API integration and hosted redirect options.
• Enterprise features: Fraud management via Decision Manager with 260+ risk variables (used by organizations like Emirates). Recurring billing and subscription support. Tokenization (card on file). Branded payment pages. Custom and auto reports with 300+ data fields.
• Onboarding: Requires a registered business in Pakistan and an HBL corporate bank account. An implementation manager is assigned for technical integration.

What to watch

• You must have an HBL bank account as the settlement account. If your primary banking relationship is with another bank, this is a constraint.
• Merchant Discount Rate (MDR) is assessed case by case. HBL does not publish standard rates. I would negotiate based on expected monthly volume and card vs. account payment mix.
• Onboarding is formal: legal agreement, pricing negotiation, technical integration, training session. This can take weeks rather than the minutes that self-serve gateways promise.
• HBL may hold merchant payments for a period for fraud-risk mitigation on certain categories.

4) Bank Alfalah IPG

Bank Alfalah offers two digital payment products: the traditional POS/IPG setup powered by MasterCard Payment Gateway Services (MPGS), and the newer Alfa Payment Gateway, which is designed for faster onboarding and digital-first merchants.

What stands out

• Published pricing (Alfa Payment Gateway):
  • Credit/Debit Card: 2.5% per transaction (settled to Bank Alfalah account), 3.0% (settled to other bank account)
  • JazzCash: 1.0%
  • Alfa Wallet: 0% (settled to BA), 1.0% (settled to other bank)
  • Conventional BNPL: 5.0% (BA credit cards only)
  • Islamic BNPL: 10.0%
  • All rates are exclusive of FED and subject to merchant volume
• Settlement: 3 working days for all payment modes.
• No setup or annual fees.
• Two account types: Instant Merchant Account (digital signup, PKR 500,000 monthly limit, ideal for SMEs and sole proprietors) and Corporate Merchant Account (full documentation, no volume cap, takes a few weeks).
• Payment methods: Credit/debit cards (Visa, Mastercard), Alfa Wallet, JazzCash, and BNPL (both conventional and Islamic).
• Integration: API, redirection, custom code. Plugins for WooCommerce, Magento, OpenCart, PrestaShop, and Shopify. Pay by Link for merchants without a website.
• MPGS infrastructure: The traditional IPG uses MasterCard Payment Gateway Services for enterprise merchants who need tokenization, recurring payments, and real-time merchant portal access.

What to watch

• The lowest rates (0% on Alfa Wallet) only apply when you settle to a Bank Alfalah account. If you bank elsewhere, the 1% surcharge applies across the board.
• BNPL rates at 5-10% are significantly higher than card rates. I would evaluate whether BNPL actually increases conversion enough to justify the cost.
• The instant merchant account’s PKR 500,000 monthly cap is fine for small sellers but restrictive for growing businesses. Upgrading to a corporate account requires full KYC and takes longer.

5) PayPro

PayPro positions itself as a one-window collections platform rather than just a checkout button. It covers digital invoicing, gateway integration, over-the-counter collections, and recurring billing under one umbrella.

What stands out

• Broadest bank coverage I have seen listed publicly: 20+ banks including HBL, UBL, Meezan, MCB, Allied, NBP, Askari, BAHL, Faysal, Habib Metro, Samba, DIB, JS Bank, MIB, Bank Islami, BOP, BOK, Summit Bank, and U Microfinance Bank.
• Wallets: EasyPaisa, JazzCash, SadaPay, and NayaPay.
• Over-the-counter (OTC) partners: TCS, Meezan Bank, Leopards Courier, and AlBaraka. This is useful if your customers prefer paying cash at a physical location.
• International cards: Visa and Mastercard accepted.
• Integration plugins: Shopify, WooCommerce, Magento, and OpenCart. REST API available for Android and iOS app integration.
• Enterprise features: Saved payment options (tokenized), recurring payments, pre-authorization holds, and dynamic routing between multiple bank gateways for higher success rates.
• Requirements: Business/merchant bank account (sole proprietor accepted), NTN, business details, and account maintenance certificate.

What to watch

• Refund timeline: PayPro states that standard refund processing takes 21 to 28 working days. This is longer than most competitors and will affect your customer support workload.
• Charges are not published and “vary from business to business based on volumes and other parameters.” I would request a written fee schedule before committing.
• PayPro explicitly lists prohibited categories including firearms, alcohol, gambling, MLM, and several others. I would check this list against your business model early.

How to choose your option in 10 minutes

Step 1: Match product type to your behavior

• If I needed only checkout, I would start with XPay or PayFast.
• If I needed a broader payment-and-collections workflow with OTC support, I would shortlist PayPro.
• If I wanted bank-backed acquiring with multicurrency, I would look at HBLPay Checkout.

Step 2: Stress test your usage assumptions

• I would compare the total blended cost (gateway fee + acquirer MDR + FED) for my expected transaction mix, not just the headline percentage.
• I would check plugin support for my specific e-commerce platform before signing.
• I would ask about settlement timing and failed-payment handling in writing.

Step 3: Set controls before committing

• I would run a small live test with my top two choices before migrating fully.
• I would keep one backup gateway configured in case of downtime or disputes.

FIRE Rule for Payment Gateway Decisions

The right gateway increases successful collections without adding operational drag. A better sales pitch means little if the tool creates integration headaches, settlement friction, or refund hassles.

Comparison Table (Quick View)

Feature	XPay	PayFast	HBLPay Checkout	Bank Alfalah IPG	PayPro
Transaction fee	0.3% + acquirer MDR	Negotiated per merchant	MDR negotiated case by case	2.5% cards (BA), 3% (other bank)	Varies by business
Settlement	Depends on acquirer	Depends on acquiring setup	2 working days (T+2)	3 working days (T+3)	Not published
Setup fee	None listed	None listed	None listed	None	None listed
Cards accepted	Visa, Mastercard, PayPak	Visa, Mastercard, PayPak	Visa, MC, UnionPay, PayPak	Visa, Mastercard	Visa, Mastercard
Wallets	EasyPaisa, JazzCash	EasyPaisa, JazzCash, UPaisa, JS Zindagi	Supported (unspecified)	Alfa Wallet, JazzCash	EasyPaisa, JazzCash, SadaPay, NayaPay
Bank transfers	Yes	12+ partner banks	HBL + partner banks	Bank Alfalah accounts	20+ banks
Multicurrency	Not specified	PKR only	PKR, USD, EUR, GBP, AED, SAR, SGD, CAD	PKR (USD for corporate)	PKR (international cards)
Plugins	Shopify, WooCommerce	WooCommerce, Shopify, Magento, OpenCart, WHMCS, PrestaShop	Magento, Shopify, WooCommerce	WooCommerce, Magento, OpenCart, PrestaShop, Shopify	Shopify, WooCommerce, Magento, OpenCart
API / SDKs	REST API, React Native, Flutter, Kotlin, Swift	REST API	API, PHP/.NET snippets	API, redirection, custom code	REST API, Android/iOS
Recurring billing	Yes (tokenized)	Via billing product	Yes (subscriptions)	Yes (MPGS)	Yes
SBP license	Via acquirer partners	Licensed PSO/PSP	Via HBL (bank license)	Via Bank Alfalah (bank license)	Via acquiring bank
Best for	Merchants prioritizing checkout conversion	Merchants wanting local PSP with broad coverage	Formal businesses needing multicurrency	SMEs wanting transparent published rates	Businesses needing OTC collections

Related Reading

• Top 5 Pakistan Payment Rails - understanding Raast, 1LINK, PayPak, and how domestic rails connect to your gateway
• Top 5 Remittance Apps to Send Money to Pakistan - if you are also receiving international payments

Industries and Onboarding Speed

Provider	Typical onboarding	Industries commonly served	Notable clients
XPay	Minutes to days (self-serve)	E-commerce, food delivery, healthcare, fashion, SaaS	Domino’s Pakistan, PriceOye, Deal Cart, Allmytech, Laam, Bookme, Baroque
PayFast	Minutes (self sign-up)	E-commerce, services, education, ticketing, subscriptions	Broad SME base across 12+ bank partners
HBLPay Checkout	Weeks (formal process)	Airlines, telcos, government, large retail, subscription services	Enterprise merchants via HBL network
Bank Alfalah IPG	Instant (SME) / Weeks (corporate)	Retail, e-commerce, services, BNPL merchants	Broad via BA branch network
PayPro	Days	E-commerce, services, education, insurance, collections	Broad via 22+ bank/wallet partners

Official Product Pages

• XPay
• XPay Pricing
• PayFast
• HBLPay Checkout
• Bank Alfalah IPG
• Alfa Payment Gateway
• PayPro

Image Credit

Feature image source: Unsplash. User-provided credit: SumUp.