KARACHI, November 05 2024: In a significant move to boost the digital financial ecosystem in Pakistan, the State Bank of Pakistan (SBP) has granted in-principle approval to M/s Toko Lab Private Limited and M/s Accept Technologies Private Limited (trading as PayMob) for establishing an Electronic Money Institution (EMI) and a Payment System Operator (PSO)/Payment Service Provider (PSP), respectively. This approval will allow the companies to initiate their development processes and infrastructure setup in preparation for applying to the SBP for permission to commence pilot operations.
In addition, the SBP has given the green light to M/s HubPay Private Limited to initiate pilot operations as an EMI after assessing its readiness for launching the service. The move signals SBP’s continued efforts to strengthen Pakistan’s digital payment landscape, further integrating financial services with modern technological innovations.
Growing Digital Financial Landscape
With this approval, the number of active EMIs in Pakistan continues to rise. Currently, four (04) EMIs—M/s NayaPay, M/s Finja, M/s SadaPay, and M/s Akhtar Fuiou Technologies—are running full commercial operations, while three (03) others—M/s Wemsol, M/s E-Processing System, and M/s HubPay—are still in pilot stages. Three additional EMIs—M/s YAP, M/s Cerisma, and M/s Toko Lab—have received in-principle approval for establishing readiness to begin their pilot operations. This growing number of players underscores the dynamic expansion of the electronic money sector and the broader payment services market in the country.
Key Metrics Highlighting Growth
As of September 30, 2024, the cumulative impact of these EMIs on the Pakistani financial ecosystem is clear. They have collectively opened 4.2 million e-wallets, issued 4.6 million payment cards, and held e-money deposits worth PKR 5.7 billion. Notably, there has been a significant year-on-year increase in these key metrics, with e-wallets growing by 76.5%, card issuance increasing by 41.4%, and e-money deposits surging by 87.5%.
The growth story does not end there. During the first three quarters of 2024 (January to September), the total value of transactions made through e-wallets offered by EMIs reached a staggering PKR 231.9 billion, with 82.1 million individual payments processed. This represents an impressive growth of 163% in transaction volume and 117% in value compared to the same period last year.
Enhancing Financial Inclusion
These developments align with the government’s broader objectives of promoting financial inclusion in Pakistan. By expanding access to digital financial services, these initiatives are helping to bridge the gap between the unbanked population and modern financial tools, fostering greater economic participation. The rise of EMIs and PSOs/PSPs is expected to play a pivotal role in the digitalization of Pakistan’s financial sector, providing consumers with more accessible and efficient methods for making payments, transferring money, and managing their finances.
Looking Ahead: Future Prospects
The approvals granted by SBP represent just the beginning of what is expected to be a transformative phase for Pakistan’s digital payments infrastructure. As more players enter the market and as existing players scale their operations, the competition will likely drive innovation, making digital financial services more affordable, secure, and user-friendly.
With SBP’s continued support and oversight, these emerging institutions are poised to play a key role in Pakistan’s push toward a cashless society. As the country moves forward with these digital innovations, the hope is to see greater efficiency in financial transactions, faster payments, and enhanced access to financial services for millions of underserved individuals and businesses.
This progressive move by SBP underscores Pakistan’s commitment to modernizing its financial services sector and aligning with global trends in digital finance. As the country continues to embrace technological advancements, the future of digital payments in Pakistan looks increasingly promising.
