In order to create a payment digitalization system landscape, SBP has given its nod to seven new Payment System Operators/Payment Services Providers (PSO/PSP) that are expected to begin their operations in Pakistan via various services.
Pilot and In-Principle approvals for such operators were issued by the State Bank of Pakistan (SBP). Some of these operators have started their pilot operations, along with their business partners, while a few operators have earned endorsement for various services.
As per the central bank, these organizations will serve as electronic networks for the clearing, processing, routing, and switching of electronic transactions.
SBP has set up a provision of Rs 200 million for pay-up capital for those operators. Among these new entrants are NIFT (Pvt.) Ltd., Avanza Premier Payment System and Foree Pay.
The SBP also confirmed that it would not be liable for any financial, legal, and reputational damage to any entity or person who has formed a business affiliation with the particular PSO/PSP on the basis of the In-Principle approval letter.
Furthermore, three operatives are also providing facilities to customers directly and indirectly through their associate banks.
Pakistan also recently unveiled a new state-run instant digital payments system, called Raast, which is an easy-to-use, efficient, and cost-effective payment option that will provide opportunities to small businesses and those without easy access to payments systems. .
New market players are emerging through the mixing of technology with various creative solutions within the financial division. The presence of these new organizations will not only draw local and foreign investment within the financial sector but will also increase the speed of the country’s economy’s digitization along with the enhanced level of consumer ease and thus the stakeholders.