Global e-commerce giant Alibaba has entered Pakistan’s retail and fintech market as the company has been granted a license by the Securities and Exchange Commission of Pakistan (SECP), after which Alibaba will launch its services in Pakistan through its subsidiary ‘Kokotik’.
Under this new development, Alibaba is introducing the ‘Buy Now, Pay Later’ (BNPL) facility in Pakistan. Through this service, Pakistani consumers will be able to buy items of their choice from the e-commerce market and pay for them in easy monthly instalments. This model will prove to be especially beneficial for those consumers who prefer to buy according to their budget instead of making a lump sum payment.
According to the notification, Alibaba will also make direct investments in Pakistan through this initiative, which will not only boost the digital economy in the country but will also create new employment opportunities.
Experts believe that the arrival of a large company like Alibaba will increase competition in Pakistan’s e-commerce market and provide better and more modern facilities to consumers. This investment is a testament to the confidence of global institutions in Pakistan’s fintech sector.
Alibaba, one of the largest e-commerce companies in the world, has introduced its presence in Pakistan in a new and modern direction. Although Alibaba is already present in Pakistan through its ownership of Daraz, the establishment of a new subsidiary named “Kokotik” and its obtaining a license from SECP indicates that the company is now directly investing in the “Fintech” and financial services sector.
What is Kokotik and BNPL service?
“Kokotik” is an Alibaba company that has been licensed by the Securities and Exchange Commission of Pakistan to operate as a “Non-Banking Finance Company” (NBFC). Its main objective is to provide the facility of “Buy Now, Pay Later”(BNPL).
Under this service, customers will be able to get the items in easy installments instead of paying the full price at the time of online purchase.
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