The State Bank of Pakistan (SBP) has recently granted a license to Cerisma Pvt Limited, a fully-owned subsidiary of Pakistan State Oil (PSO), to establish an Electronic Money Institution (EMI). This significant development marks a strategic move by PSO to expand its presence in the financial sector and leverage its extensive retail network and customer base.
Cerisma has received an in-principle approval from the banking regulator to offer e-money wallets for both consumers and merchants. This initiative underscores PSO’s commitment to meet evolving customer needs and tap into the burgeoning fintech market in Pakistan.
The decision to venture into the fintech sector comes after careful consideration by PSO, which aims to capitalize on its vast network of retail outlets and point-of-sale functions across the country. By establishing Cerisma Pvt Limited as a non-banking finance company, PSO seeks to enhance its fintech operations and explore new business opportunities.
According to the company’s annual report, Cerisma will play a pivotal role in building a robust digital ecosystem, with its primary operations based in Sindh, Pakistan. The subsidiary will leverage PSO’s corporate fund flow management expertise and retail network to support the development of innovative digital solutions.
PSO’s foray into the fintech sector is not entirely unprecedented. In 2017, the state-owned enterprise (SOE) explored the possibility of launching branchless banking services, with plans to potentially acquire Telenor’s branchless banking arm, Easypaisa. The company’s extensive retail network, comprising over 3,528 petrol pumps nationwide, provides a solid foundation for its fintech endeavors.
Last year, PSO forged strategic partnerships with Jazzcash and MCB Bank to enhance its financial services offerings. The addition of Cerisma to PSO’s fintech portfolio is expected to further enrich the landscape of EMI businesses in Pakistan, fostering healthy competition among market players.
However, the success of Cerisma in the competitive fintech landscape will depend on effective leadership and strategic execution by both the fintech operator and its parent company. While the fintech sector in Pakistan presents lucrative opportunities, operators face stiff competition from mainstream commercial banks and microfinance institutions.
Despite the challenges, PSO remains optimistic about the prospects of Cerisma and its ability to drive innovation and digital transformation in the financial services sector. With the granting of the EMI license, Cerisma is poised to make significant strides in reshaping the fintech landscape in Pakistan.
