The Securities and Exchange Commission of Pakistan (SECP) has approved CocoTech Pakistan for a Non Banking Finance Company licence, marking the official entry of Alibaba Group into Pakistan’s digital financial services market. The development enables the global technology and e-commerce company to introduce Buy Now Pay Later services in the country through its local subsidiary, CocoTech Pakistan, signalling a new phase of expansion in Pakistan’s fintech ecosystem.
CocoTech Pakistan operates as a direct subsidiary of Alibaba Group and is expected to roll out a Buy Now Pay Later model aimed at enabling consumers to purchase goods from various e-commerce platforms while paying through flexible installment plans. The approval from SECP allows the company to operate within Pakistan’s regulated financial framework, expanding access to digital credit solutions for consumers who may have limited access to traditional financing channels. The model is widely used in global markets and is designed to increase affordability and boost online retail consumption by offering short term financing options at the point of purchase.
SECP Chairman Dr Kabir Ahmed Sidhu highlighted the significance of this development, noting that Pakistan’s large consumer base and rapidly growing digital economy continue to attract international investment. He emphasised that the financial services sector in the country holds substantial growth potential, particularly as digital adoption accelerates across urban and semi urban markets. The entry of Alibaba through CocoTech is expected to introduce greater competition in the emerging fintech space, encouraging innovation and broader financial inclusion.
Industry observers suggest that the introduction of Buy Now Pay Later services could have a notable impact on Pakistan’s e-commerce and digital payments landscape, particularly for young consumers, freelancers, and small businesses. By integrating flexible payment solutions into online shopping platforms, the initiative is expected to improve financial accessibility and support the expansion of digital commerce. The move also reflects a broader trend of global technology companies entering Pakistan’s financial services sector, leveraging regulatory frameworks such as Non Banking Finance Company licensing to offer structured digital lending products.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
