KARACHI: China’s Alibaba Group has entered Pakistan’s financial services market through a local unit that will offer “buy now, pay later” services, the country’s securities regulator said on Tuesday, as the tech giant expands into the country’s fast-growing digital economy, reports ‘Arab News’.
The Securities and Exchange Commission of Pakistan (SECP) said it had granted a non-banking finance company licence to Coco Tech Pakistan, an Alibaba-backed firm that will offer a “buy now, pay later” service, enabling consumers to purchase goods from e-commerce platforms and pay in instalments, a model that has gained traction globally as an alternative to traditional credit.
“Alibaba will make direct investment in Pakistan,” the regulator said in a statement, announcing the company’s entry into the market.Pakistan’s e-commerce sector has expanded rapidly in recent years, driven by increasing smartphone use and a young population, but access to formal credit remains limited, particularly for small businesses and freelancers.
“Pakistan’s large consumer market and rapidly growing digital economy are attracting international investors,” SECP Chairperson Akif Saeed was quoted as saying in the statement. He added that “the inclusion of Alibaba Group willbring greater competition and innovation” to the Pakistani market. The regulator said the move would help improve access to financial services for underserved segments, including youth and small businesses.
