SBP Grants License to SafePay, Allows YAP Pakistan To Begin Pilot Operations

State Bank of Pakistan (SBP) has granted a commercial license to SafePay to begin its services of E-commerce Payment Gateway as a PSO/PSP operator. The banking regulator also allowed YAP Pakistan to begin its pilot for launching an e-money wallet service for consumers. SafePay is among six PSO/PSP operators that have launched their commercial services in Pakistan. The first license for PSO/ PSP services was issued a decade ago in 2015 to 1Link Guarantee Limited. It is followed by Virtual Remittances Gateway, Webdnaworks Pvt Ltd., NIFT Pvt Ltd, and Avanza Premier Payment Services. The banking regulator granted an operational license to any PSO/PSP operator after a gap of 5 years. SafePay was granted an initial license in 2022. It is claimed as the first Pakistani fintech to have graduated from Y-Combinator, the prestigious US-based accelerator. It also fostered an exclusive partnership with Visa’s Cybersource. According to the SBP, one PSO/PSP operator is operating in a pilot phase, three operators have obtained in-principle approval from the banking regulator, whereas the licenses of three PSO/PSP operators were revoked due to non-compliance with regulations and other reasons. YAP Pakistan, as an EMI operator, also received a nod from the banking regulator to commence its pilot operations. The fintech operator will introduce an e-money wallet service in a different way. The fintech operator is in the process of launching a digital app that provides innovative digital banking wallet solutions. It also signed a partnership with Bank Alfalah Limited to provide services to SMEs. The Dubai-based fintech operator received its in-principle approval in November 2022. YAP Pakistan is a division of YAP Global, the first financial super app in the Middle East, Africa, and South Asia, providing consumers and businesses with a one-stop shop of innovative financial products through the YAP Store, YAP Financial Marketplace, and YAP Hub besides YAP Pakistan, Hubpay was also allowed to begin pilot operations in October 2024. The operator plans to provide e-money wallet services to consumers and merchants.