State Bank approves OPay's acquisition of Finja EMI
The State Bank of Pakistan (SBP) has granted its approval to a
foreign fintech company, OPay, for the acquisition of the payment operations of
local fintech firm, Finja, according to officials confirmed by ProPakistani.
Finja is among four operators offering e-money wallet services
to customers and merchants in specific regions of Pakistan. It received a
commercial license from the banking regulator in 2021.
Prior to venturing into payment operations, Finja had
established a lending business primarily serving grocery stores, which
continues to operate under its previous ownership.
OPay, the new entrant, is a comprehensive mobile-based platform
offering services such as payments, transfers, loans, savings, and other
essential financial services to individuals. OPay was founded by Opera Norway
AS Group and has a presence in emerging markets across Asia, Africa, and Latin
America.
The Electronic Money Institution (EMI) sector in Pakistan has
faced challenges due to the lack of a conducive environment for digital
payments. Intense competition among fintech operators and the presence of
digital banking services offered by commercial banks have contributed to market
saturation.
In 2023, two fintech operators, Checkout and Careem Payment
Solutions, withdrew their licenses from the central bank. Several fintech
operators are now considering license withdrawals or exploring mergers and
acquisitions with banks or other fintech companies.
Source: Pro Pakistani