Pakistan’s Fintech industry experienced both triumphs and challenges in 2023, showcasing significant developments and transitions across various operators.
Initially, the Fintech landscape depicted a thriving scene with innovative services flourishing. However, operators focusing on traditional services encountered substantial challenges like intense competition and narrow profit margins.
- Operators and Licenses: 10 fintech operators commercially operate in Pakistan. Six hold licenses from the Security Exchange Commission of Pakistan (SECP), and four are regulated by the State Bank of Pakistan (SBP) as electronic money institutions.
- ABHI’s Expansion: ABHI, a Pakistani Fintech, expanded its presence globally, particularly in the UAE, partnering with Visa Inc. and YellowPepper for an account-to-account payment service. ABHI received global recognition from the World Economic Forum and secured a groundbreaking Rs. 2 billion through Sukuk Islamic bonds.
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- Akhtar Fuiou and EP Systems’ Launches: Akhtar Fuiou Technologies and EP Systems received approvals for commercial and pilot launches from SBP, introducing innovative services like e-money wallet for farmers.
- SadaPay’s Freelancer Enablement: SadaPay introduced a service allowing freelancers to receive payments through GooglePay and ApplePay, catering to the growing freelancer community in Pakistan.
- Withdrawals and Sell-offs: Unfortunately, CheckOut, CareemPay, Paymax, and Finja took steps to withdraw or sell their operations in Pakistan, impacting the local fintech landscape.
- Future Outlook: The fintech sector in Pakistan anticipates heightened competition, especially in niche services like nano-loans and tailored innovations for specific customer segments.
The text highlights both success stories and challenges faced by various fintech entities, shaping the financial technology landscape of Pakistan in 2023.
