The Securities and Exchange Commission of Pakistan has issued a non-banking finance company license to Coco Tech Pakistan, a subsidiary linked to Alibaba Group. This approval allows the company to offer buy-now, pay-later services in the local market.
This step marks Alibaba’s formal entry into Pakistan’s regulated fintech and e-commerce finance sector. With the NBFC license, Coco Tech can provide instalment-based shopping options. Customers will be able to pay for products in monthly plans instead of making full payments up front.
The move may improve access to online shopping for a wider group of users. Young consumers, freelancers, and small businesses may benefit from flexible payment options. It may also support financial inclusion by bringing more users into formal digital systems.
Pakistan’s buy now, pay later segment is still in its early stages but shows steady growth. This model allows users to split purchases into smaller payments over time, often with low or no added cost.
A few local players, such as QisstPay and Bank Alfalah, have already introduced similar services. Despite this, overall market reach remains limited when compared to global markets where BNPL is widely used.
The country’s e-commerce and digital payments sector is expanding. The rise in smartphone use and digital wallets or branchless banking has propelled this. Aiding this was a supporting regulatory framework that permitted the steady expansion of such services.
Alibaba may also look at further investment in Pakistan. The company already has a presence through Daraz and Alipay’s stake in Telenor Microfinance Bank. This latest step builds on its earlier efforts and expands its role into consumer finance and digital payments.
