FinTech news in Tag category

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.

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.