Chinese company to invest $100m in digital payments sector

LAHORE: Opay, a Chinese company present in various countries including Nigeria, plans to invest $100 million in Pakistan’s digital payments sector by increasing points of sale (POS) from 10,000 to 100,000, its country president told Dawn on Tuesday.

It also plans to buy a microfinance bank and has applied for the requisite licence, Ali Mubashir Kazmi said. “Opay entered Pakistan with an initial investment of $4m but now plans to invest up to $100m,” Mr Kazmi said. As for points of sale, the company would attain the 20,000 POS target in the first phase, he said.

Opay fintech raised $400m from international investors led by Japan’s SoftBank, and the company is valued at $2 billion. The investment was aimed at capturing emerging markets like Pakistan.

With a changing financial landscape amid technological development, fintech and digital banks in Pakistan are working to tap the immense potential in a large unbanked market.

“Opay has a long-term view on Pakistan. There is a great opportunity in the financial sector development, and we are geared to play our role. Opay has digital expertise and plans to penetrate the unbanked segment. The commercial view is to bring an investment of $100m into Pakistan as [foreign direct investment],” he said.

Opay Pakistan is already operating with over 200 employees and now plans to increase the number significantly. It is providing financial services as a third party and has already installed over 10,000 POS. Its parent has already invested $4m in POS machines and related infrastructure and is now waiting for a licence from the State Bank of Pakistan.