Fintech is going to be transform by branchless banking in Pakistan by mid-2018. There is a good news for financial sector as the Fintech is going to revolutionize the economic division of Pakistan by the mid of 2018.
According to Express Tribune, PTA is planning to give Third Party Service Providers’ licenses by June or July 2018 to rise up financial inclusions all across the country.
So what’s the new? After this initiative you would be able to make transactions to any other account of a different mobile network or from a wallet to any bank account, all across the country.
Currently Telecom regulator, PTA is accelerating online transactions across all mobile phone networks, just in a similar way we make a phone call from one network to another.
Fintech is basically known as financial technology, is an umbrella term which is used for digital banking services.
In general words, you can take that it is the facility for users to make financial transactions from one platform to any other account of a different mobile network, all across the country.
For now, Jazz’s Mobicash, UBL’s Omni, Telenor’s Easypaisa are offering mobile-based branchless banking services, but sill these providers have imperfection as you can’t make online transactions from one service to another.
In order to promote Fintech and to develop a better system of connection between different service providers PTA has taken a step by accepting applications for the Third Party Service Providers’ licenses.
According to a statement given by PTA,
“We have received two applications and the Third Party Service Providers’ system is expected to be launched in mid-2018. The third-party framework will also be critical for the launch of Asaan Mobile Account under the National Financial Inclusion Strategy.”
The initiative taken by PTA is great as after implementation it certainly will decrease hard cash transactions and will eradicate the threat of cash theft. You can say that in near future, we’ll get an easy way to get rid from the risk of cash theft.
The new system will let users to make transactions easier from one wallet to another or from a wallet to the bank account.
PTA asserted that it is an open licensing tender and hopefully according to the need of the market further expansions can be made.
Moreover, the fee of licensing of the Third Party Service Provider is Rs. 1 million to Rs. 10 million. In the meantime, the performance bond is also compulsory.
Apart from this, there are additional regulatory dues like annual license fees, which is 0.5% of the whole revenue of the license.
However, after this great move, Pakistani market expects to make out more digital financial services.