FinTech news in pakistan category

Pakistan markets regulator issued new guidelines for digital lending in the country, cracking down on several sketchy practices that it said have become prevalent in the South Asian market. The non-banking finance firms will be required to share these key facts with consumers through audio or video and emails and text messages in both English and Urdu languages. Neighboring nation India also introduced strict rules surrounding digital lending in a move that has toppled the local fintech industry. (You can read the full-guidelines here {PDF}.)

State Bank of Pakistan said in an order that it is revoking Tag’s approval to operate as an electronic money institution, the permission that is required for entities to offer innovative, user-friendly and cost effective low-value digital payments instruments such as wallets, cards and contactless payments. Pakistan central bank on Friday revoked the in-principle and pilot operations approval of Tag to operate as an electronic money institution in a move that poses existential threat to the firm. The regulatory action follows a months-long probe into Tag, which offers banking and financial services such as contactless payment, cards and wallets to users in Pakistan. The central bank has also ordered the startup to close all customers’ wallet accounts and pull its apps from the app stores with immediate effect.

Pakistan embedded finance platform Neem has raised $2.5 million in a seed funding round as it works to support underbanked communities in the country.

A founder of Tag accused the other co-founder of forging documents to the central bank; upon discovery of the fraudulent act the bank suspended the startup, a letter to investors in June said. The central bank did not outline (PDF) which regulatory rules Tag had violated, but set a deadline of August 19 for the refund. The startup has been accused of forging documents to the central bank, according to an investor letter obtained by journalist. The regulatory action follows a months-long probe into Tag, which offers banking and financial services to users in Pakistan.

Islamabad-headquartered startup Dbank said on Thursday it has raised $17.6 million in a seed round, the largest in Pakistan, co-led by Sequoia Capital Southeast Asia, the recently unveiled $1 billion fund, and Kleiner Perkins.

Piecing together many of its services makes sense for a startup like Bazaar in Pakistan because it enables the startup to offer a more comprehensive set of values to a merchant, and Easy Khata is helping the firm win customers, Saad Jangda, co-founder of Bazaar, said in an interview with journalist. Dragoneer Investment Group and Tiger Global are backing Bazaar, a startup that is attempting to digitize Pakistan retail with e-commerce, fintech and last-mile supply chain solutions, they said today, joining a growing list of high-profile investors making large bets in the South Asian market.

Pakistan-based fintech platform NayaPay has raised $13 million in a seed round to roll out its multi-service messaging and payment app, and to build payment acceptance and financial management tools for businesses in the South Asian country.