The fintech landscape in Pakistan is witnessing a dichotomy as innovative operators thrive with sustainability in both on-ground and paper expansion. Conversely, those planning to offer traditional services face challenges due to intense competition and narrow profit margins. Currently, 10 fintech operators are active commercially, with six regulated by the Security Exchange Commission of Pakistan (SECP) and four as electronic money institutions under the State Bank of Pakistan (SBP).
In recent developments, ABHI, a Pakistani fintech, expanded its global presence, particularly in the UAE, by launching an account-to-account payment service in collaboration with Visa Inc. and YellowPepper. ABHI’s notable achievements in 2023 include being recognized as a technology pioneer by the World Economic Forum and securing Rs. 2 billion through Sukuk Islamic bonds. Founders Omair Ansari and Ali Ladhubhai were selected as Endeavour Entrepreneurs, showcasing ABHI’s global recognition and financial success.
Another key player, Akhtar Fuiou Technologies, obtained a commercial license from the State Bank of Pakistan for its e-money wallet farmers, following a successful pilot launch. EP Systems also received approval for pilot operations, introducing an e-money wallet for merchants and consumers. EP Systems, supported by Systems Limited, had previously launched the digital e-commerce platform OneLoad in 2020, securing $11 million from the Bill & Melinda Gates Foundation.
Kistpay, a Pakistani fintech, made waves globally by expanding its operations to Rwanda, Africa. The company received recognition from UNDP and ITU, ranking among the top 10 in the SDG Digital GameChangers Awards. Additionally, Kistpay joined the P2C Digital Coalition with ITU to pursue collaborative efforts for meaningful connectivity and community empowerment.
SadaPay, focusing on freelancers, launched a service enabling payments through GooglePay and ApplePay, addressing the needs of the growing freelance community in Pakistan. This move aligns with the global reach of Apple Pay, surpassing PayPal’s user base and offering four times greater payment volume.
However, not all news is positive in the fintech sector. Two prominent players, CheckOut and CareemPay, decided to withdraw their licenses from the Pakistani market. Economic uncertainty and heightened competition were cited as reasons for this strategic shift, impacting the local fintech landscape.
In a surprising move, Finja sold its Electronic Money Institution (EMI) operations to Opay International, redirecting its focus toward the lending business. Meanwhile, Paymax, operating as CMPECC, opted to wind up its operations in Pakistan after more than a year, facing challenges in the competitive fintech sector.
Despite these exits, the competition among fintech operators is expected to increase gradually, especially among those providing services such as nano-loans and e-money wallets in limited operational areas. The recent regulatory support for international remittance services opens up new opportunities for fintech operators in Pakistan’s evolving financial landscape.
