Bank Alfalah, one of the largest commercial banks in Pakistan, has signed an agreement to acquire a 7.2% equity stake worth PKR 140 million in QistBazaar, a fast-growing, Securities and Exchange Commission of Pakistan (SECP) licensed Buy Now Pay Later (BNPL) non-bank financial company (NBFCs) platform. This marks a breakthrough in the country’s fintech landscape, as it has the first time a commercial bank has taken an equity stake in a BNPL fintech.
In addition to the equity agreement, Bank Alfalah and QistBazaar have signed an embedded financing agreement in Shariah Compliant mode for up to PKR 350 million, subject to terms and conditions. The Bank will incorporate digital financing product within the QistBazaar platform to offer embedded consumer durables financing on BNPL. The partnership is expected to usher in a new era by enhancing the customer experience, improving financial inclusion, and providing innovative solutions.
Atif Bajwa, President and CEO of Bank Alfalah, said the collaboration aims to address the needs of customers with limited access to credit and lower purchasing power. He added that the partnership with QistBazaar through an equity investment and Islamic-embedded financing deal marks a significant step forward to provide inventive financial solutions and create new opportunities for growth and support for underserved customers.
QistBazaar CEO Arif Lakhani expressed his excitement about the collaboration, saying that with Bank Alfalah coming in as equity and embedded financing partner and their guidance and experience, their work will become much easier. He added that QistBazaar has been on a mission to democratise purchasing power, and with the collaboration, they will be able to continue to do so.
The signing ceremony has attended by senior leadership from the Bank, including Atif Bajwa, Aasim Wajid Jawad, and Yahya Khan, and from QistBazaar, Co-Founders Arif Lakhani and Karim Gilani, along with other executives.
The Buy Now Pay Later (BNPL) facility is becoming increasingly popular among consumers due to its affordability, convenience and financial flexibility while offering a cost-effective solution to traditional means of purchasing in times of high-interest rates. Bank Alfalah currently operates a thriving BNPL product through its award-winning e-commerce marketplace platform, Alfa Mall. Through this collaboration, the Bank aims to expand into customer segments with thin or non-existent credit files.
Also read this: https://www.skipper.pk/qistbazaar-hits-rs-1-0-billion-in-sales-within-a-mere-17-months/
