The Securities and Exchange Commission of Pakistan (SECP) has granted QisstPay the first-ever BNPL license in Pakistan.
Why it matters: This Non-Banking Finance Company (NBFC) license is the first of its kind given by the SECP to a new fintech startup.
This opens up Pakistan for massive investments in the fintech sector.
The BNPL license:
- provides credibility to the BNPL platform
- enables the platform to offer the BNPL experience to merchants and users who have been provided security in collaborating with an online retail marketplace
- will allow QisstPay to expand its services into other lending verticals such as house financing, car financing, micro-lending, leasing, etc
- provides additional consumer protection backed by zero liability fraud protection
You should know: The Buy Now, Pay Later model is fairly new in the country. It provides a convenient experience for consumers and merchants.
Consumers can choose how and when they pay for items over a period of time with the option of interest-free BNPL offers.
Before you go: QisstPay is the most well-funded BNPL startup in Pakistan. Last year it raised $15 million in seed funding from a handful of investors.
Zoom Out: Online shopping has increased dramatically during the pandemic. The BNPL option is increasingly popular with merchants who want to make the shopping experience convenient and transparent for consumers.
