In 2004, long before mobile payments were a familiar concept in Pakistan, Inov8 FonePay began its journey into digital financial services. Co-founder Hasnain Sheikh shared that the company started working on mobile payments at a time when the idea was largely unheard of. The team spent two years in stealth mode before unveiling its multi‑bank mobile payment platform in 2006, securing partnerships with major banks, telcos, utility companies, airlines, and insurance firms. The platform, which Sheikh believes was among the first of its kind globally, was officially launched in 2008 and received widespread media attention. Despite the excitement, regulators were cautious and requested that banks deactivate the service to allow time for understanding the technology. This delay led to significant challenges for Inov8 FonePay, resulting in the loss of partners and a drastic reduction in staff. Between 2009 and 2011, the organization restructured and shifted its focus towards the B2B market, ultimately emerging resilient and more agile.
By 2015 Inov8 FonePay had raised $5.4 million, a milestone that coincided with the evolution of its consumer platform. The company separated its consumer division into a distinct entity to preserve a startup culture and maintain operational flexibility. Today, FonePay has established itself as one of Pakistan’s largest acquiring platforms, serving more than 50,000 merchants and partnering with over 13 banks. The platform aims to become a super app, offering a wide range of services beyond payments. Users can book bus or cinema tickets, schedule doctor appointments, arrange ride hailing services, and make utility bill payments. FonePay’s integration with multiple financial institutions allows users to link their accounts and make secure mobile payments at numerous locations nationwide, reflecting the company’s expanded footprint in Pakistan’s digital economy.
Sheikh also discussed broader trends in the fintech sector, emphasizing the difference between basic digital payments and true digital transformation. He explained that for banks to be genuinely digital, back‑end systems must be fully automated, enabling real‑time processing for services such as instant loan approvals. This systemic work accounts for a significant portion of what it means to be digital, far beyond surface‑level user interactions. He pointed out that many FinTech and financial institution ventures are still primarily focused on money transfer and basic payment solutions. According to Sheikh, deeper financial inclusion requires services that allow customers to sign up for accounts in real time, building sufficient data to support savings, loans, insurance, and other financial products. This approach lays the foundation for a more comprehensive digital financial ecosystem in Pakistan.
Sheikh praised the role of local incubators and accelerators such as Plan 9 and PITB in nurturing Pakistan’s startup ecosystem, highlighting the contributions of leaders from PASHA and Nest I/O. He noted that while the ecosystem has made progress, further development in areas such as early‑stage funding and AI or machine learning innovation is needed. Sheikh projected ambitious goals for FonePay in the coming years, including onboarding one million merchants and reaching 50 million customers in Pakistan. He stressed that the company’s focus extends beyond payments to becoming a data‑centric organization that leverages insights to drive future growth and services.
Watch the complete video interview here.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
