Pakistan is strategically positioned to embrace the fintech revolution, attracting investors who recognize the abundant opportunities within its financial technology landscape. The convergence of growing smartphone usage expanded internet connectivity, and government initiatives to promote digital financial technologies have laid a solid foundation for fintech’s expansion.
Irfan Iqbal Sheikh, the head of the Federation of Pakistan Chambers of Commerce and Industry, notes that the fintech sector boasts around 269 startups, many of which have achieved remarkable success and sustainability.
This flourishing fintech scene in Pakistan presents endless prospects for collaboration with local professionals to launch innovative ventures. Regulatory support has notably improved in recent years, with heightened involvement from the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP).
The SBP, in its guidelines paper for the Digital Financial Services – Innovation Challenge Facility, projects that the market potential for digital finance services in Pakistan will surpass $36 billion by 2024. This growth is expected to contribute a 7 percent boost to the GDP and generate 4 million new jobs.
The emergence of digital banking has fundamentally altered how Pakistanis manage their finances. According to a recent McKinsey report, digital banking adoption in Pakistan is projected to exceed 45% of the population by 2024. Success stories such as JazzCash and Easypaisa underscore the growing emphasis on financial inclusivity, empowering users to conduct transactions, settle bills, and oversee their funds effortlessly.
The Buy Now, Pay Later (BNPL) model has swiftly gained popularity among Pakistani consumers. According to data from the State Bank of Pakistan, BNPL transactions surged by an impressive 67% in the past year alone. Notably, platforms like Daraz’s ‘DigiPay’ have thrived, offering interest-free installment options to shoppers. BNPL not only transforms the shopping experience but also fosters responsible financial habits.
International Transactions: Seamless Cross-Border Connectivity Fintech platforms are also revolutionizing international transactions in Pakistan. With the introduction of digital payment gateways such as Payoneer, PayPal, and Wise (formerly TransferWise), individuals and businesses can effortlessly send and receive payments worldwide. The Pakistan Software Export Board reported a 47% increase in IT exports, partially attributable to the smoother international transactions facilitated by these platforms.