The State Bank of Pakistan (SBP) has granted a license to the fully-owned Subsidiary of Pakistan State Oil (PSO), Cerisma Pvt Limited, for setting up an Electronic Money Institution (EMI).
The banking regulator issued an- in-principle approval to Cerisma for e-money wallets for consumers and merchants alike.
PSO stepped up to strengthen its business in the financial sector after prolonged consideration of utilizing its wide network of retail outlets and presence of point-of-sale functions across the country. To address the business environment and meet customer needs, PSO has established its presence in the fintech sector by incorporating Cerisma (Pvt.) Limited, a non-banking finance company. This entity will be responsible for executing and expanding the existing fintech operations and exploring new ventures, the annual report stated.
By leveraging its extensive customer base, retail network, and corporate fund flow management expertise, Cerisma will support PSO in building a robust digital ecosystem with its main place of business in Sindh, Pakistan, the report further stated the company’s future plan.
Earlier in 2017, the State-Owned Enterprise (SOE) also bid to launch its branchless banking services with a potential bank as a subsidiary to use the same strength of financial channel. Its management was also mulling to buy Telenor’s branchless banking arm, Easypaisa, till last year.
PSO operates the largest retail network of petroleum products, with over 3,528 petrol pumps nationwide. The Oil Marketing Company (OMC) also established various business synergies on the financial front last year with Jazzcash and MCB Bank.
The addition of Cerisma to the fintech business will further broaden the landscape of EMI’s business along with competition among market players, but it would depend on the leadership of the fintech operator and its parent company.
Fintech operators in Pakistan face immense competition with each other and other market players in the financial sectors, including mainstream commercial and microfinance banks. At least three operators have revoked their plans to continue their business in Pakistan, while some operators with licenses might follow the same suit.
