KARACHI: Pakistan’s PayPak payment network plans to introduce its first credit card for microfinance customers after HBL Microfinance Bank, network operator 1LINK and payments firm Euronet signed an agreement on Tuesday.

PayPak is a domestic card network whose existing cards let customers spend money from their bank accounts. The planned product would instead allow eligible customers to borrow for purchases, potentially extending card-based credit to people served by a microfinance bank. Its reach will depend on who qualifies, where the card can be used and what borrowing costs.

Under the agreement, HBL Microfinance Bank will issue the cards, 1LINK will provide the PayPak network and Euronet will supply the processing technology, the companies said. They did not announce a date when customers could apply.

“This partnership aims to give microfinance customers greater choice, flexibility and convenience in how they access credit and make payments,” HBL Microfinance Bank President and Chief Executive Amir Khan said in the statement.

The bank said it plans both conventional and Islamic credit card offerings. The statement did not specify eligibility requirements, credit limits, interest or other charges, leaving the terms of the proposed borrowing product unclear

PayPak had already announced plans for a domestic credit card earlier this year. Tuesday’s agreement identifies its first issuing bank and technology partner, but cards have not yet been launched.