In a major move for the country’s digital economy, China’s Alibaba Group has officially entered the Pakistani financial market to offer a “Buy Now, Pay Later” service, allowing millions of shoppers to buy products online and pay in easy installments.
The global tech giant Alibaba has officially entered Pakistan’s financial market. The company will offer a “Buy Now, Pay Later” (BNPL) service. This move allows Pakistani shoppers to buy products online and pay for them in easy monthly installments.
The Securities and Exchange Commission of Pakistan (SECP) announced on Tuesday that it has granted a Non-Banking Finance Company (NBFC) license to Coco Tech Pakistan (also referred to as Koko Tech). According to the regulator, this marks a new chapter as Alibaba will make direct investments in Pakistan to build a digital credit system.
A New Way to Shop for Common People
For many Pakistanis, buying expensive items like smartphones or laptops upfront is difficult. Alibaba’s entry changes this by bringing a globally tested “Buy Now, Pay Later” model. This is an alternative to traditional bank credit cards, which are often hard for common people to get.
According to SECP Chairperson Akif Saeed, the inclusion of Alibaba Group will bring much-needed competition and innovation to the local market. The service uses advanced AI-driven systems to check credit, making it easier for those without formal bank documents to shop.
The regulator mentioned that this move specifically targets underserved groups, including youth, freelancers, and small businesses.
Confidence in Pakistan’s Digital Future
Pakistan’s e-commerce sector is expanding rapidly due to high smartphone use and a massive young population. However, many people remain “underserved,” meaning banks don’t easily lend them money.
The SECP chairperson noted that Pakistan is now an attractive destination for international investors. By offering easy installments, this service will boost e-commerce activity and will make online shopping more accessible for everyone.
