Two Pakistani technical firms have joined hands to form a local online payment gateway system to make a position in the growing e-commerce market. To assist the project two groupsAvanza Group and Premier Systems invested almost $5 million in the gateway, and it directly aims to combine individuals with merchants and banks. According to the reports, the two companies will work as a combined venture Avanza Premier Payment Services (APPS).
CEO of Avanza Group Mahmood Kapurwala stated, “the size of Pakistan’s e-commerce market is estimated to be $1 billion, which should be $30-$40 billion in a country with a population of 207 million, We are looking at this gap as an opportunity.”
Pakistan’s e-commerce market should have grown by $1 billion if we roughly calculate, and it has to be on $30-$40 billion in a country whose population is 207 million. CEO of Avanza Group collaborated with NCR, Avaya, Microsoft, and IBM to make this project successful. These two Pakistani technical firms claim to make the country first-ever Financial technology (fintech) to acquire payment system provider (PSP) and payment system operator (PSO) licenses from SBP (State bank of Pakistan).
Adnan Ali, CEO, APPS said, “It will move Pakistan towards digitizing major institutions, such as merchants, schools, billing industries, mutual funds and other corporate entities by providing a digital gateway.”
It will also generate about 4 million jobs, 93 million bank accounts, add $36 billion annually to the Gross National Product (GNP), and by 2025 add $7 billion to the government’s net revenue, according to McKinsey and Company, a worldwide management consulting firm. Whereas Authorities issued APPS the license on one condition that they have to raise a capital of RS 200 million.
They also incentivize brick and mortar businesses with free online web services like building a website and digital marketing. But APPS will only take a certain percentage of profit gained in the business of online. By building such technical firms helps to grow the e-commerce market which expands the retail market so that people can buy products present in other cities