Karachi, November 5, 2024 – The State Bank of Pakistan (SBP) has granted in-principle approval to two companies—Toko Lab Private Limited and Accept Technologies Private Limited (PayMob)—to establish operations as an Electronic Money Institution (EMI) and a Payment System Operator (PSO)/Payment Service Provider (PSP), respectively. This pivotal decision marks a progressive step towards fostering innovation in the financial technology sector.
The approved EMIs and PSOs/PSPs are now tasked with developing their infrastructure and ensuring operational readiness within the next six months. Upon completion, they will be eligible to apply to the SBP for permission to commence pilot operations, a crucial phase in testing their systems and services before full-scale launch. Additionally, the SBP has also permitted HubPay Private Limited to initiate its pilot operations as an EMI, reflecting the regulator’s commitment to expanding digital financial services in the country.
As of now, the digital payment ecosystem is thriving, with four EMIs—NayaPay, Finja, SadaPay, and Akhtar Fuiou Technologies—already operating in the commercial arena. Furthermore, three EMIs, including Wemsol, E-Processing System, and HubPay, are currently in pilot operations. Meanwhile, Toko Lab, along with Cerisma and YAP, has secured in-principle approval, positioning them to advance towards pilot status.
According to the latest data from the SBP, the growth of EMIs has been remarkable. By September 30, 2024, these institutions had collectively opened 4.2 million e-wallets and issued 4.6 million payment cards, reflecting a robust uptake of digital payment methods. Notably, outstanding e-money deposits reached PKR 5.7 billion, showcasing a year-on-year increase of 87.5%.
The upward trajectory of the e-money sector is further emphasized by transaction statistics. In the first three quarters of 2024 alone, a staggering 82.1 million payments were processed through e-wallets, totaling PKR 231.9 billion. This represents a significant growth of 117% in the number of transactions and a 163% increase in the total value compared to the same period last year.
The SBP’s proactive stance in approving new players in the digital finance space not only underscores its commitment to fostering financial inclusion but also highlights the growing confidence in electronic payment systems among consumers. As the landscape continues to evolve, the SBP aims to facilitate a competitive environment that encourages innovation while ensuring regulatory compliance.
With the emergence of new EMIs and PSOs/PSPs, Pakistan is on the brink of a digital payment revolution that promises to enhance convenience and accessibility for consumers across the country. As these institutions prepare for their pilot phases, the financial technology sector is set to experience a transformative shift that could redefine the future of transactions in Pakistan.
