- Madison Realty Capital Provides $53 Million Construction Financing to Heritage Equity Partners for Multifamily Development in BrooklynPosted 14 hours ago
- Taconic Biosciences Expands Immuno-oncology Animal Model PortfolioPosted 2 days ago
- ینگ شینگ اناج اور تیل کی مہم ٹائمز اسکوائر، نیو یارک، یو ایس اے میں نشرPosted 6 days ago
- Yingshang Grains and Oils Campaign Appears at Times Square, New York, USAPosted 6 days ago
- Open Society Foundations Announce 2020 Puerto Rico Youth FellowsPosted 6 days ago
- Sabin Vaccine Institute Funds Researchers to Investigate COVID-19 Misinformation, Design Solutions to Increase Vaccine AcceptancePosted 7 days ago
- ٹی سی ایل کی جانب سے سی ای ایس 2021 کے موقع پر مختلف کیٹیگریز میں نئی مصنوعات کی رونمائی- ٹی وی ،آڈیو،موبائل اور جدید گھریلو مصنوعاتPosted 7 days ago
- At CES 2021 TCL Unveils Newest Products in Multi-Categories – TV, Audio, Mobile and Smart Home AppliancesPosted 7 days ago
- سنیک ویڈو نے افتتاحی مواد کے ساتھ پاکستان میں اپنی پہلی تخلیق کار یعنی افتیتاحی کنٹینٹ اکیڈمی کی شروعات کردی ہیںPosted 7 days ago
- SnackVideo Kickstarts Its First Creator Academy in Pakistan with Inaugural Content CreatorsPosted 7 days ago
Seven FinTech Companies Receive Approvals to Operate as EMIs in Pakistan
Seven FinTech companies in Pakistan have received in-principle and pilot approvals to operate as Electronic Money Institutions (EMIs) in 2020.
These EMIs have planned to provide services of E-money wallet to merchants and customers. One EMI is also working to offer services, including a payment gateway to consumers and merchants.
The five companies that received pilot approvals from the State Bank of Pakistan (SBP) include Finja, Nayapay, Wemsol, SadaTech, and CMPECC. Some of these companies are working tirelessly to expand through collaboration with various financial institutions and connecting with their targeted audience under the given domain.
The two companies, EP Systems and TAG Innovations, were granted In-Principle approval by the central bank.
SBP clarified that In-Principle approval letters are granted to EMIs based on the information submitted by them and a review of their application for In-Principle approval under regulations for EMIs. It must not be construed as an endorsement of the EMIs proposed business model, financial viability, etc., by the SBP.
The central bank also clarified that it would not be responsible for any financial, legal, and reputational loss to any entity or individual who has established a business relationship with the respective EMI based on the In-Principle approval letter.
Electronic Money Institutions (EMIs) issue e-money and offer innovative, user-friendly, and cost-effective low-value digital payment prepaid instruments like wallets, prepaid cards, and contactless payment instruments. These innovative payment instruments have been conducive in promoting cashless payments like merchant checkouts, e-commerce, transportation, and toll payments, etc.
According to regulations, an entity that wants to become an EMI shall hold an initial capital of Rs. 200 million. Existing Payment System Operators and Payment Service Providers (PSOs/PSPs) that intend to become EMIs and undertake e-money business shall hold an additional capital of Rs. 100 million.
EMIs may engage in the following activities:
- Issue e-money payment instrument
- Distribute e-money payment instruments
- Redeem e-money payment instruments
- Any other activity permitted by SBP
E-money shall be used to make payments for goods and services, bill payments, fund transfers, and cash deposits and withdrawals from e-money accounts. These companies shall not conduct the business of banking, including the acceptance of funds from the public for lending, investments, or any speculative activity.
EMI shall not issue e-money payment instruments at a discount, i.e., issue e-money payment instruments that have a monetary value greater than the funds received from customers.