BNPL regulation in Pakistan is moving from a background conversation to a front-burner priority. The State Bank of Pakistan (SBP) is finalising a framework that would formally bring buy-now-pay-later (BNPL) services under its supervision, as a wave of fintechs scales up digital credit for millions of Pakistanis who have never held a bank account or credit card.
What Is BNPL and Why Does It Matter for Pakistan
BNPL stands for buy now, pay later. It lets a customer buy something today and pay for it in small instalments over weeks or months. No credit card needed, no bank visit, often no paperwork. For Pakistan, where a large share of the adult population remains outside the formal banking system, this is a big deal.
Pakistan’s digital economy is growing fast. According to SBP data, retail payments in Q2-FY26 totalled 3.4 billion transactions worth Rs167 trillion, with digital channels making up 92% of all transaction volume. Separately, mobile banking users reached 27.1 million and branchless banking app users rose to 92.2 million in the same period. That is a huge base of people already comfortable transacting on their phones but still cut off from credit.
BNPL fills that gap. It uses alternative data such as mobile usage patterns, purchase history, and app behaviour to decide who gets credit, instead of relying on salary slips or a credit bureau score. For Pakistan’s large uncarded population, that approach can open doors that traditional banks keep shut.
Who Is Already Active in This Space
QistBazaar is one of the most prominent Pakistan-based BNPL platforms. It offers instalment plans on mobile phones, laptops, appliances, motorbikes, and even solar panels, targeting middle and lower-income buyers. In 2023 it became the first BNPL fintech in Pakistan to receive a commercial bank equity investment, when Bank Alfalah took a 7.2% stake worth PKR 500 million and became its embedded lending partner. QistBazaar is also certified as Shariah-compliant, meaning its instalment plans avoid interest, which matters enormously in a country where many consumers will simply not use an interest-based product.
ZoodPay and ZoodMall, operated by Tez Financial Services, offer BNPL at checkout for online and in-store purchases. Switzerland-based ZoodPay acquired Tez Financial to enter Pakistan’s market, describing the country as one “brimming with potential” for digital credit.
QisstPay focuses on BNPL at the e-commerce checkout, while Abhi offers earned wage access, allowing employees to draw salary they have already earned before payday. Edufi runs a study-now-pay-later model aimed at education costs. All of these players are licensed by the Securities and Exchange Commission of Pakistan (SECP) as non-bank finance companies (NBFCs) and appear on the SECP’s approved digital lender whitelist.
Where BNPL Regulation Pakistan Currently Stands
Right now, BNPL sits in a split regulatory space. The SECP licences non-bank digital lenders, while the SBP governs banks, microfinance banks, and the broader payments ecosystem. When a BNPL platform partners with a bank for embedded credit, both regulators become relevant. This dual-regulator reality creates grey areas around consumer protection, credit reporting, and data use.
The SBP’s National Financial Inclusion Strategy sets a target of raising financial inclusion to 75% by 2028, up from current levels. A clear BNPL regulation framework would help the central bank count BNPL credit as part of that inclusion drive in a measurable, auditable way. Experts tracking the space say the SBP and SECP are moving toward real-time regulatory technology monitoring and want clearer disclosure standards so consumers know exactly what they are signing up for.
The key risks regulators want to address are not complicated: consumer over-borrowing, hidden charges, algorithmic bias in credit scoring, and data privacy. Pakistan still does not have a fully enacted Personal Data Protection law, which means the data collected by BNPL apps sits in a legal grey zone. A formal BNPL regulation framework from the SBP would be expected to set minimum disclosure requirements, cap default penalties, mandate credit bureau reporting, and require lenders to check a borrower’s existing debt load before approving a new instalment plan.
What New Rules Would Mean for Everyday Consumers
For an ordinary Pakistani shopper using a BNPL app to buy a phone on instalments, formal regulation means several things. First, clearer terms. Right now, some BNPL platforms bury their late fees and processing charges in long terms-of-service documents. A regulated environment would require these to appear upfront in plain language.
Second, a complaints path. The SBP already runs a consumer complaints portal for bank customers. Bringing BNPL under SBP oversight would likely extend that protection to BNPL users too, giving them a formal place to raise disputes.
Third, credit history. If BNPL lenders are required to report repayment data to the SBP’s eCIB credit bureau, a consumer who pays instalments on time will start building a credit history. That credit history could eventually help them qualify for a bank loan or a credit card, creating a real ladder out of financial exclusion.
Pakistan’s freelancers stand to benefit too. The country has one of the world’s largest freelance populations, and these workers often face cash-flow gaps between projects. BNPL services aligned with project-based income cycles could ease short-term pressure, provided the terms are fair and transparent. You can read more about how Pakistan’s broader fintech sector is maturing in our look at Haball crossing $3 billion in B2B payments, another sign of how fast digital finance is scaling here.
The Shariah Factor Nobody Is Talking About
Most international BNPL commentary ignores this, but in Pakistan it is central. A significant share of consumers will avoid any credit product that charges interest, known as riba in Islamic finance. QistBazaar’s Shariah certification shows the market is aware of this. Any formal BNPL regulation from the SBP will almost certainly need to define a Shariah-compliant BNPL structure, just as the SBP already maintains parallel conventional and Islamic frameworks for digital banks. Without that, a large segment of the population remains unreachable no matter how well the rest of the rules are written.
What Comes Next
The SBP is expected to issue consultation papers before any final BNPL framework is published, giving fintechs and consumer groups a chance to comment. The fintech industry generally welcomes clearer rules because uncertainty is bad for investment. Investors putting money into a BNPL platform want to know the regulatory floor will not shift without notice. At the same time, the larger platforms that are already SECP-licensed and have embedded bank partnerships are better placed to absorb compliance costs than smaller new entrants.
For Pakistan’s underbanked digital consumers, the direction is positive. BNPL regulation in Pakistan, done well, could turn an informal credit workaround into a regulated, reportable, and rights-protected financial product, one that actually helps people build a financial identity rather than just accumulating debt.
Frequently Asked Questions
What does BNPL mean and how does it work in Pakistan?
BNPL stands for buy now, pay later. It lets you buy a product today and pay in small instalments over time. In Pakistan, apps like QistBazaar and ZoodPay offer this service. You do not need a credit card or a bank account. The app checks your eligibility using alternative data and, if approved, covers the purchase upfront while you repay in fixed amounts.
Which regulator oversees BNPL companies in Pakistan?
Currently the Securities and Exchange Commission of Pakistan (SECP) licences BNPL companies as non-bank finance companies. The State Bank of Pakistan (SBP) oversees banks and payments. When a BNPL firm embeds credit from a bank, both regulators are involved. A dedicated BNPL regulation framework from the SBP would unify consumer protections under one clearer set of rules.
Is BNPL halal in Pakistan?
It depends on the product structure. QistBazaar holds a Shariah-compliance certification, meaning its instalment model avoids interest and follows Islamic finance principles. Not all BNPL platforms in Pakistan are Shariah-certified. Consumers who want a halal product should check whether the platform carries a valid Shariah certification from an accredited body before signing up.
What risks does BNPL pose for consumers?
The main risks are over-borrowing, hidden fees, and lack of consumer awareness. If someone takes multiple BNPL plans at once without tracking the total repayment load, they can quickly run into debt stress. Regulators are also concerned about algorithmic credit scoring that may be biased, and about how BNPL apps store and use personal data. A formal regulatory framework is designed to address all of these risks directly.
