Checkout Limited, a renowned UK-based financial service provider, has revoked its plan to set up an Electronic Money Institution (EMI) or fintech in Pakistan.
The company has withdrawn its license formally from the State Bank of Pakistan (SBP) which it received in September 2022, as the State Bank of Pakistan officially updated its status on the website.
ProPakistani reached out to Checkout Limited for their official comment on the matter. Their viewpoint will be shared upon arrival.
The company was provided in-principle approval by the central bank to launch its financial services and products including an E-money wallet for Merchants, E-Commerce Payment, and Gateway for Consumers and Merchants.
Sources told ProPakistani that the reason for the discontinuation of the investment and business plan is the prevailing uncertainty and economic situation of the country.
The decision to shelve business in Pakistan by the company reflects the abysmal level of confidence investors have in the Pakistani market, which has also witnessed the closure of various business units in the last few months.
Not only did the planned investment inflows by the financial company not arrive in the country, but also the employment opportunities and the phenomenon of technology transfer would not be carried out in the local market.
Checkout.com, (with the legal name of the main entity as Checkout Ltd), is a global payment provider which offers reliable payments in more than 150 different currencies. It also accepts payments from all major international card schemes, including Visa, MasterCard, and American Express, along with other popular alternatives and local payment methods.
The company had set up its office in Karachi and hired the required staff to scale up its operations in Pakistan. It is also providing various financial solutions and partnerships with local operators, such as National Institutional Facilitation Technologies (NIFT), which may continue in the future.
According to sources, the financial technology company may review its situation and consider launching its services in the future once the country’s economic situation improves and stabilizes. However, industry experts view the business of EMIs as extremely challenging in Pakistan due to the economic situation, low margins, and cut-throat competition in the local market.
The majority of EMIs, including those already operating and those yet to launch, are allowed to provide a similar scope of services. The upcoming digital banks and the increasing digital banking services offered by conventional banks will leave little room for this sector to grow effectively.
Checkout.com is an international financial technology company that processes payments for other companies. Founded as Opus Payments in 2009, it is headquartered in London, United Kingdom. It had a valuation of $40 billion in 2022, making it the most valuable European fintech startup.
Checkout.com was also powering the Sadapay Biz account to allow freelancing payment from abroad based on a simple link. It was a miraculous solution, but Sadapay suspended my Biz account after 13 days only. Now, the above news reflects that Sadapay Biz account suspension may be due to Checkout.com EMI license withdrawal from SBP. Anyone else has any news for Sadapay Biz? Anyone is using it here?
They also reconducted KYC from me but account is working.
My Biz account is still suspended even after KYC. You might have low number of transactions, but I have huge number of transactions of small amount like $10, $15, etc.
Meray Saath bi asa hoa sadapay fraud company ha no use sadapay pesa kha gaye or fake invoice refund ki bana kar day di mujaye