Tuesday, March 5, 2024

SBP issues Pilot Approvals for Payment Digitization Operations to Seven PSO/PSP

Seven new Payment System Operators/Payment Services Providers (PSO/PSP) are set to begin their operations in Pakistan through different services to create a payment digitization system landscape.

The State Bank of Pakistan (SBP) issued pilot and in-principle approvals for such operators. Some of these operators, along with their business partners, have begun their pilot operations, while a few operators have received approval for multiple services.

These organisations will serve as electronic networks for the clearing, collection, routing, and switching of electronic transactions, according to the central bank.

For these operators, SBP has set up a requirement of Rs. 200 million for pay-up capital. NIFT (Pvt.) Ltd. and Avanza Primier Payment System are among these new entrants, as well as Foree Pay.

The SBP also stated that it will not be liable on the basis of the In-Principle approval letter for any financial, legal, and reputational loss to any entity or individual who has established a business relationship with the respective PSO/PSP.

In addition, three operators, directly and indirectly through their affiliate banks, also offer services to customers.

The new emerging players within the market are arising with various innovative solutions within the financial sector with the mixing of technology. The participation of those new entities not will attract local and foreign investment within the financial sector but also will accelerate the pace of digitization of the economy within the country along side the improved level of convenience to customers and therefore the stakeholders.

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