SECP grants Buy Now Pay Later license to Alibaba-backed Koko Tech Pakistan

The Securities and Exchange Commission of Pakistan (SECP) has announced a significant development for the nation's financial landscape by granting a Buy Now Pay Later (BNPL) license to Koko Tech Pakistan Pvt. Ltd (KTPL), a company backed by the global e-commerce giant Alibaba. This move is heralded as a major step forward for Pakistan's digital financial ecosystem.

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The entry of Alibaba-backed KTPL marks a significant milestone for Pakistan’s digital financial ecosystem.

The SECP highlighted that Alibaba's expansion into Pakistan signifies growing international trust in the country's substantial consumer base, burgeoning digital economy, and largely untapped financial services sector. Koko Tech Pakistan, leveraging its advanced artificial intelligence-driven credit assessment systems and robust global digital infrastructure, is poised to introduce cutting-edge, data-driven lending solutions within the BNPL market.

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One of the world’s leading e-commerce and technology companies, Alibaba’s move into Pakistan reflects growing international confidence in the country’s large consumer base, expanding digital economy, and untapped financial services market.

This initiative is anticipated to broaden access to consumer financing, particularly benefiting young individuals, freelancers, and small businesses that have traditionally been underserved by conventional banking channels. Furthermore, this development represents a direct infusion of foreign investment into Pakistan's financial sector. With the backing of Alibaba's extensive global expertise and financial strength, KTPL is well-positioned to bolster small and medium-sized enterprises, stimulate e-commerce growth, and accelerate the transition towards a more inclusive, technology-driven financial system.

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This will enhance access to consumer financing, particularly for young users, freelancers, and small businesses that remain underserved by traditional banking channels.

SECP Chairman Dr. Kabir Ahmed Sidhu remarked that the entry of the Alibaba Group is expected to foster greater competition and innovation within the sector. He further emphasized Pakistan's appeal as an investment destination, citing its large population, increasing digital adoption rates, and a progressively improving regulatory framework. This partnership is poised to significantly contribute to the modernization and expansion of financial services in Pakistan.

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The entry of Alibaba Group will boost competition and innovation.