Pakistan's population is expanding, and so is the number of mobile internet users. Pakistan is currently the world's fifth most populated country (with a population of around 250 million people) and is on track to become the fourth in the next few years. The number of people using the internet on their phones has reached the tipping point of 100 million, according to PTA, and this number is likely to double by 2024. Smartphone web users are increasing at a rate of around a million each month.
That’s the exact point where fintech folded their curtains. The days of taking a whole day off to go to the bank, wait in line, sign a lot of documents, submit what feels like endless identity card copies, and then being told to come back in a couple of days to finish your account registration and obtain your checkbook are gone for good. Your ATM card could arrive in less than a month if you're fortunate. However, because of the potential of fintech, a procedure as simple as opening bank accounts will become substantially easier in many parts of the world, including, presumably, Pakistan. Future technologies may be astonishingly simple. After installing a mobile application, all you have to do is make a few taps on your phone to rapidly open a bank account or make payment with your debit card without leaving your home.
There are now several fintech that can destabilize Pakistan's economy. TAG, Sadapay, and Nayapay are three of the companies that have been granted an Electronic Money Institute (EMI) license by the State Bank of Pakistan.
Fintech has the potential to completely transform the way we live, and here is just one example of how it will do so. So, what exactly is fintech? It is a grab phrase for any innovation that digitizes, enhances, or streamlines traditional financial services, and it has gained popularity as a result of the inflow of startups attempting to digitize financial services in Pakistan and elsewhere. Fintech's primary premise is to improve financial services procedures through the use of technology and automation.
On the other hand, one of the major problems of Pakistan is to collect Tax money, unfortunately. These fintech startups can potentially solve this issue. Ease of payment may convince the mass public to do their payments digitally and they can be under the eyes of the government. People will barge into the tax net when they start to use these applications, cutting people off from cash will increase the per person accountability.