IT experts stressed the need for a robust infrastructure in the fintech industry to ensure seamless and secure transactions, addressing a host of challenges such as regulatory complexities, cybersecurity risks, and data privacy concerns.
Furthermore, they highlighted that gaining customer trust, navigating evolving technologies, and addressing financial inclusion are impeding the local fintech industry.
They mentioned that online consumers face challenges such as concerns about data privacy and security, the risk of online scams and fraud, issues with product quality and accurate representation, delivery delays, and sometimes difficulty in navigating through a plethora of choices. They highlighted that there can be challenges related to returns and customer support, creating a need for consumers to be vigilant and informed when engaging in online transactions.
Establishing local fintech companies like PayPal and Stripe involves various factors, including regulatory frameworks, technological infrastructure, and market dynamics. While efforts are being made to encourage such developments, challenges like regulatory complexities and financial inclusivity need to be addressed. Maintaining open communication and collaboration with global players, along with a robust local fintech ecosystem, can contribute to the stability and growth of fintechs in Pakistan, they said.
They identified EasyPaisa and JazzCash as among the prominent and successful fintech players in Pakistan, with other notable local fintech players including HBL Konnect, UBL Omni, Keenu, and others. Each of these platforms offers a range of financial services, including mobile payments, digital wallets, and other innovative solutions.
Read Fintech fusion: Pakistan joins the open banking revolution
Speaking to The Express Tribune, Si Global Solutions CEO and IT expert, Noman Said advised consumers to protect themselves from social engineering fraud, digital fraud, and cybercrime by adopting practices such as being sceptical, using strong passwords and changing them regularly, enabling two-factor authentication, updating software and educating oneself.
He mentioned that receiving payments through fintech platforms can sometimes pose challenges in various regions, including Pakistan. The issues can range from delays in processing times to difficulties in linking local banking systems with international fintech services. He acknowledged that complaints from online consumers may be valid in some cases, reflecting the complexities of cross-border transactions and financial system integrations. Efforts are being made to enhance the fintech infrastructure, streamline payment processes, and address these concerns. However, users need to stay informed about the specific policies and limitations of the fintech platforms they are using. Additionally, engaging in open communication with fintech providers and exploring alternative payment options might help mitigate some of the challenges associated with receiving online payments.
Sarmayacar, General Partner, Aman Nasir mentioned that e-commerce still relies 85% on cash-on-delivery due to a trust deficit. Digital payments lag behind in markets with merchant acceptance at abysmally low levels, while there have been some positive developments, such as Raast merchant payments, he said.
Published in The Express Tribune, December 14th, 2023.
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