Systems Limited’s Subsidiary Gets Approval To Operate as an EMI:
System Limited, another superstar within the local IT industry, has entered the e-money business through its subsidiary EP Systems which has been granted approval by depository financial institution of Pakistan to work as an Electronic Money Institution (EMI).
State Bank’s approval allows EP Systems to work as EMI, subject to certain terms and conditions, said a politician announcement to Pakistan stock market.
The EMI approval will enable EP Systems to attach the unbanked population to the formal banking industry allowing them to transact and use the economic system easily and seamlessly.
EP Systems owns and operates OneLoad, a digital commercial and financial settlement app for little retailers across the country. Over 35,000 active retailers use OneLoad as an access point for digital payments like internet packages, mobile airtime, media, and entertainment subscriptions.
More than 150 million consumers are served through OneLoad so far, making it one of the most importantly digital commerce platforms in Pakistan, consistent with Systems Limited.
What is EMI?
In order to hurry up financial inclusion through different services, the depository financial institution of Pakistan has planned to manage fintech and corporations handling electronic money as Electronic Money Institutions (EMIs) throughout the country.
Entities who issue e-money are referred to as Electronic Money Institutions (EMIs) that provide innovative, user-friendly and cost-effective low-value digital payment prepaid instruments like wallets, prepaid cards, and contactless payment instruments including wearables.
These innovative payment instruments are instrumental in promoting cashless payments like merchant checkouts, e-commerce, transportation, and toll payments, etc.
EMIs may engage in the following activities:
Issue e-money payment instrument.
Distribute e-money payment instruments
Redeem e-money payment instruments.
Any other activity permitted by SBP.
An entity that desires to become an EMI is required to carry an initial capital of Rs. 200 million. Existing PSOs/PSPs that shall become an EMI and undertake e-money business shall hold a further capital of Rs. 100 million.
Prominent companies that acquired an equivalent approval earlier are NayaPay and Finja. it’s expected that more local and foreign companies related to financial and technology business will join the foray within the emerging field of electronic money which can not only attract investments but also speed up the financial inclusion within the economy.