Securities and Exchange Commission of Pakistan has granted a non-banking finance company license to Coco Tech Pakistan, a subsidiary linked to Alibaba Group, enabling it to launch buy now, pay later services in the country.
The development marks Alibaba’s formal expansion into Pakistan’s regulated fintech and e-commerce linked financial services space. Under the NBFC license, Coco Tech will be able to facilitate installment based online shopping, allowing consumers to purchase products through easy monthly payment plans instead of making full upfront payments.
The move is expected to improve affordability for online shoppers and support broader financial inclusion, especially among young consumers, freelancers, and small businesses.
Pakistan’s buy now pay later, market remains at an early but rapidly evolving stage. BNPL allows consumers to split purchases into smaller scheduled payments, usually through short term interest free or low cost installment plans.
In Pakistan, the segment has been gradually expanding over the past few years through players such as QisstPay and Bank Alfalah’s installment platforms, but market penetration is still relatively low compared with mature global markets.
Pakistan’s e-commerce and digital payments ecosystem has been growing steadily, supported by rising smartphone penetration, digital wallets, branchless banking, and stronger regulatory support for fintech innovation.
Alibaba is expected to explore direct investment in Pakistan, signaling growing confidence in the country’s large consumer market and long term digital economy potential. Alibaba already has an established presence in Pakistan through earlier strategic moves, including its acquisition of Daraz and Alipay’s investment in Telenor Microfinance Bank, making this latest entry a natural extension into consumer finance and embedded payments.
