State Bank of Pakistan’s Electronic Money regulations have given rise to an increasing number of Electronic Money Institutions or EMIs. Non-bank entities can offer customers e-money for digital payments licensed by the SBP. Easypaisa, UPaisa, JazzCash, and SIMSIM are examples of EMIs. The State Bank of Pakistan has recently given an in-principle approval to Lakson Group’s NayaPay to open E-Money accounts and make P2P and Peer-to-Merchant payments.
Already a 1Link PayPak affiliate member and a background in technology and media, NayaPay is uniquely positioned against its competition. It has partnered with banks and aggregators to facilitate users with multiple options for cash withdrawal, loading and bill payment. Users will have easy access to funds through the app and its associated debit card through any ATM and numerous retailers across Pakistan. Users will also be able to pay NayaPay merchants instantly from their mobile phones using secure EMVCo and QR codes.
Like all innovation and disruption, the market is cautious yet quick to adopt solutions that establish a long-term trust relationship with them.
Danish A. Lakhani, CEO, NayaPay said: “E-Money will make financial services simpler, more convenient and accessible to the Pakistani user – the needs of whom have been overlooked for far too long. As a home-grown platform, NayaPay will continue to drive innovation and iterate to best address specific pain points of local users and businesses while strictly following international AML and CFT guidelines.”
Because of their strong roots in technology and lack of legacy baggage, Fintech startups have a better track record of capturing KYC data and aligning AML and CFT guidelines than the traditional banks. Having said that, entry of EMIs force banks to partner with them for better customer outreach and offerings. Like all innovation and disruption, the market is cautious yet quick to adopt solutions that establish a long-term trust relationship with them.
