The Securities and Exchange Commission of Pakistan (SECP) has granted a Non-Banking Finance Company (NBFC) license to Coco Tech Pakistan, a subsidiary linked to Alibaba Group, enabling it to roll out Buy Now, Pay Later (BNPL) services in the country.
The development marks Alibaba’s formal entry into Pakistan’s regulated fintech and e-commerce-linked financial services sector. Under the NBFC license, Coco Tech Pakistan will be able to offer installment-based online shopping solutions, allowing consumers to purchase products through flexible monthly payment plans instead of paying the full amount upfront.
The move is expected to enhance affordability for online shoppers while supporting broader financial inclusion, particularly among young consumers, freelancers, and small businesses.
Pakistan’s BNPL market remains at an early yet rapidly evolving stage. The model allows consumers to split purchases into smaller, scheduled payments, typically through short-term, interest-free or low-cost installment plans.
In recent years, the segment has seen gradual growth with players such as QisstPay and Bank Alfalah offering installment-based solutions. However, overall market penetration remains relatively low compared to more mature global markets.
The country’s broader e-commerce and digital payments ecosystem continues to expand, driven by increasing smartphone adoption, the rise of digital wallets, growth in branchless banking, and strengthening regulatory support for fintech innovation.
Alibaba’s latest move is also seen as a signal of growing confidence in Pakistan’s consumer market and long-term digital economy potential. The company already maintains a significant presence in the country through its acquisition of Daraz and Alipay’s investment in Telenor Microfinance Bank, making this expansion a natural progression into consumer finance and embedded payments.
