Islamabad, Dec 31: The fintech sector in Pakistan is rapidly emerging, bridging the gap between the unbanked population and the financial sector. This growth is fostering innovation but also intensifying competition as new players and strategic mergers shape the landscape.
Key Developments in 2024:
- Mergers and Acquisitions: ABHI fintech, in partnership with TPL Corporation, made history by acquiring the foreign FINCA Microfinance Bank, setting a precedent for other fintech operators. In contrast, Finja, a pioneering fintech operator, sold its operations to the expanding fintech giant Opay, marking its exit from Pakistan.
- New Entrants: The sector sees four new players joining, including Cerisma, a PSO subsidiary, which is set to launch e-money wallets. Toko Lab and EduFi Financial Services are also entering the market with services targeting consumers and students.
- Regulatory Updates: The State Bank of Pakistan (SBP) continues to grant licenses and approvals, with several operators now conducting pilot operations and some withdrawing from the market.
Looking Ahead to 2025:
As competition heats up, especially in digital lending, e-money wallets, and Buy Now Pay Later services, fintech operators that innovate and offer superior services will likely lead the market, continuing to drive the sector’s growth.
