The Securities and Exchange Commission of Pakistan (SECP) on 21 December 2021 awarded QisstPay, a Buy Now, Pay Later (BNPL) license, the first ever BNPL License in Pakistan. This license of a Non-Banking Finance Company (NBFC) is the first of its kind given by the SECP to a new Fintech concept that opens up Pakistan for massive investments in the Fintech Sector and allows the adoption of new Fintech concepts.
The License provides credibility and authenticates Buy Now Pay Later platform brought to Pakistan by QisstPay to give consumers a flexible way to pay online through equal, interest-free installments in a regulated environment. The additional authenticity provided by a licensed entity enables the platform to offer the BNPL experience to merchants and users who have been provided security in collaborating with an online retail marketplace. Even bigger, this license will allow QisstPay to expand its services into other lending verticals such as House Financing, Car Financing, Micro-lending and more.
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The Buy Now, Pay Later model delivers a convenient and transparent experience for consumers and merchants. For consumers, it enables them to choose as to how and when they pay for items from a brand, they trust while enjoying a seamless experience of a before and after checkout through options to access interest-free BNPL offers. The BNPL license provides additional consumer protection backed by zero liability fraud protection, not yet available through most current BNPL offerings.
“People want control and flexibility on how they pay and where they shop. QisstPay offers that and as the first licensed BNPL in Pakistan, we’re providing consumers and merchants the peace of mind with a digital-focused way to spend their money and how it is spent is in the most secure hands,” said Jordan Olivas, Co-Founder and CEO QisstPay.
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The BNPL License is groundbreaking for the growing Tech Industry in Pakistan where laws and regulations have not augmented to perfectly respond to FinTech development. The existing regulations are tailored to the banking and finance system that precedes the digital revolution. The first-ever BNPL License is a stepping stone for FinTech laws and provides hope for laws and regulations to pave the way for a more regularized Tech Industry that can substantially support the economy.
The BNPL License acquisition was channeled by Legal Advisor – QisstPay, Barrister Safi Ullah Ghauri who is also Managing Partner of Esquare Legal. “This BNPL License comes as a breakthrough for FinTech companies that hold the promise of heralding a renaissance for entire economies with innovative financial products and services and the impact of which transcends to so much more,” said Barrister Safi Ullah Ghauri the legal advisor for QisstPay.
Online consumer spending has accelerated substantially during the pandemic and BNPL adoption by marketplaces has increased globally with merchants searching for ways to make the shopping experience convenient and transparent for consumers. These attempts by all the three parties involved, the SECP, the Tech Lawyers and the FinTech Industry, to understand one another and accordingly create a conducive work environment is reassuring to all stakeholders.
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