SBP Grants In-Principle and Pilot Operations Approvals to EMIs and PSOs/PSPs

The State Bank of Pakistan (SBP) has granted in-principle approval to Toko Lab Private Limited and Accept Technologies Private Limited (PayMob) for establishing their operations as an Electronic Money Institution (EMI) and Payment System Operator (PSO)/Payment Service Provider (PSP), respectively.

The recent approvals represent a crucial advancement in the growth of Pakistan’s digital financial landscape. Both companies now have a six-month window to enhance their infrastructure and get ready for pilot operations before they can apply for final approval from SBP.

Additionally, authorization has been given to HubPay Private Limited to undertake the pilot as an EMI after assessing the company’s preparedness to operate as an EMI. They all go to the improvement of the number of electronic money entities in the country.

At the moment, four EMIs including NayaPay, Finja, SadaPay, and Akhtar Fuiou Technologies are operating in commercial operations. Three others, including Wemsol, E-Processing System, and HubPay, are in pilot operations, while three more including YAP, Cerisma, and Toko Lab, have received in-principle approval and are preparing to start their pilot operations.

By September 30th, 2024, aggregated EMIs in Pakistan have enrolled 4.6 million payment cards, 4.2 million e-wallets, and approximately PKR 5.7 billion e-money deposits. These figures show impressive year-on-year growth, with e-wallets increasing by 76.5%, card issuance up by 41.4%, and e-money deposits growing by 87.5%.

In addition, 82.1 million payments have also been made through e-wallets during the first three quarters of the year 2024 (January to September) which is worth Rs 231.9 billion. This represents a staggering year-on-year growth of 117% in the number of payments and 163% in transaction volume, underscoring the rapidly expanding adoption of digital financial services in Pakistan.