Financial news

Pakistan’s fintech space has reached a new milestone as Bank Alfalah, one of the country’s largest commercial banks, takes a 7.2 per cent equity stake in QistBazaar, a fast-growing buy now, pay later (BNPL) fintech.

This is the first time a commercial bank has invested in a BNPL fintech, highlighting the growing potential of fintech companies in the region.

QistBazaar, a non-bank financial company (NBFCs) platform, caters to all Pakistanis, including those unbanked and with little to no financial history. The fintech offers a 12-month installment plan with an extra profit on every sale. Since its inception in 2021, QistBazaar’s platform has delivered over 20,000 products, ranging from mobile phones to refrigerators, to unbanked consumers.

Bank Alfalah’s partnership with QistBazaar is worth PKR500million ($1.7million) and includes the bank becoming the fintech’s embedded lending partner.

The partnership will provide enhanced digital financing products within QistBazaar’s platform, offering embedded consumer durables financing on BNPL, deepening its ability to serve customers with limited or no access to formal credit. Bank Alfalah and QistBazaar plan to enhance the overall customer experience, offer innovative solutions, and improve financial inclusion through their partnership.

On the partnership

“At Bank Alfalah, we are committed to working with partners to address the needs of customers with limited access to credit and lower purchasing power. Our collaboration with QistBazaar through an equity investment and Islamic-embedded financing deal marks a significant step forward,” said Atif Bajwa, president and CEO of Bank Alfalah.

Arif Lakhani, CEO of QistBazaar, expressed his enthusiasm for the milestone, stating: “Our milestone achievement with Bank Alfalah – coming in as our equity and embedded financing partner – and with their guidance and experience, makes our work and mission much easier to execute. We look forward to the future with great confidence.”

The BNPL facility is becoming increasingly popular among consumers in Pakistan due to its affordability, convenience, and financial flexibility. This move from Bank Alfalah suggests a growing potential of fintech companies in the region, with more partnerships and collaborations expected in the coming months.