LMKR, Mastercard formalize partnership to accelerate digital transformation across Pakistan

Mastercard and LMKR have formalized their strategic partnership to oversee the implementation of the country’s first open-loop transit payment solution.

The solution can be implemented through the country’s entire transit infrastructure i.e. on the bus rapid transit networks, etolling systems etc. Through this collaboration, commuters will top-up and pay for their transit fares through their debit and credit cards or digital wallets without the need to buy separate tickets for these services. The formal agreement between the two organizations was signed at the end of June.

Developing affordable and accessible public transport systems is a crucial enabler of socio-economic development in Pakistan. Transport providers traditionally rely on only cash or “closed-loop” payments such as fare cards, which hold only a prepaid amount that must be replenished when it runs out. “Open-loop” payments, on the other hand, are connected directly to personal accounts such as credit or debit cards and hence, result in saving time and efforts of the travelers.

“We are delighted to partner with Mastercard to upgrade and streamline Pakistan’s current payment infrastructure. Openloop systems make universal payments a reality and bring us one step closer to a unified digital ecosystem. It is a milestone moment in Pakistan’s digitization journey” said Atif Rais Khan, CEO & Chairman, LMKR.

“COVID pandemic has brought contactless payments into the mainstream by prompting unprecedented numbers of consumers to adopt the technology. Mastercard’s digital offerings will enable the passengers to pay using their bank cards, providing additional freedom to users and decreasing the costs of creating special cards. Our strategic partnership with LMKR will transform the everyday commuter experience for people in Pakistan. We are hopeful it will play its part in accelerating the growth of Pakistan’s digital economy,” said J.K Khalil, General Manager – MENA East Cluster.

Mastercard’s New Payments Index 2022 recently found that 89% of people in Pakistan have used at least one emerging payment method in the last year, while 12% of consumers indicated they used less cash during this period. The Index further shows that 68% of users in Pakistan increased their use of digital payments in the last year. The two companies signed a Memorandum of Understanding in December 2021.

About LMKR:

LMKR (www.lmkr.com) is a diversified technology company that works in the areas of Transportation, Agri-Tech, Oil & Gas, Clean Energy and Integrated Security. In the Transportation sector, LMKR works under the brand name Trverse (www.trverse.com) developing cutting-edge intelligent mass transit systems as well as logistics solutions. For the better part of the last decade, LMK Group has worked in the transport sector helping governments and regulators implement solutions that make public transit safe and efficient. We look to transform the mobility landscape of cities and help provide transport that is sustainable, ethical and equitable.

About Mastercard:

Mastercard is an American multinational financial services corporation. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the “Mastercard” brand debit, credit and prepaid cards to make purchases. Mastercard is a key enabler of digitization in the country.