Headline:
PSO’s Subsidiary, Cerisma Pvt Limited, Granted License for E-Money Institution by State Bank of Pakistan
Subheadline:
Move to Strengthen PSO’s Business in Financial Sector Signals Expansion into Fintech
Body:
In a strategic move to bolster its presence in the financial sector, Pakistan State Oil (PSO) has secured a significant milestone as its fully-owned subsidiary, Cerisma Pvt Limited, receives approval from the State Bank of Pakistan (SBP) to establish an Electronic Money Institution (EMI). The banking regulator has granted an in-principle approval to Cerisma for the issuance of e-money wallets, catering to both consumers and merchants.
PSO’s decision to venture into the fintech domain follows extensive deliberation, driven by the company’s ambition to leverage its expansive retail outlets and robust point-of-sale infrastructure across Pakistan. Cerisma Pvt Limited, positioned as a non-banking finance company, will spearhead PSO’s foray into fintech, executing existing operations while exploring new avenues, as outlined in the company’s annual report.
With its primary operations set in Sindh, Pakistan, Cerisma aims to capitalize on PSO’s vast customer base, retail network, and expertise in corporate fund flow management to establish a resilient digital ecosystem.
The move is not entirely unprecedented, as PSO had previously contemplated branching into branchless banking services in 2017, with plans to potentially acquire Telenor’s branchless banking arm, Easypaisa. This latest endeavor aligns with PSO’s broader strategy to diversify its business portfolio and capitalize on synergies within the financial landscape.
PSO, known for operating the largest retail network of petroleum products in Pakistan, boasts over 3,528 petrol pumps nationwide. The Oil Marketing Company (OMC) has also forged strategic partnerships on the financial front, including collaborations with Jazzcash and MCB Bank in the preceding year.
The entry of Cerisma into the fintech realm is poised to intensify competition within the EMI sector, while also contributing to the evolving landscape of financial services in Pakistan. However, success in this competitive arena will hinge on effective leadership from the fintech operator and its parent company.
Despite the burgeoning opportunities, the fintech sector in Pakistan faces significant challenges, with several operators either withdrawing their plans or contemplating similar actions. The dynamics of competition among market players, including mainstream commercial and microfinance banks, add further complexity to the evolving fintech landscape in the country.
