Pakistan’s financial regulator has issued a non-banking finance company (NBFC) license to Coco Tech Pakistan, a firm linked to Alibaba Group, clearing the way for the launch of buy now, pay later (BNPL) services in the country.

The approval marks a significant step in Alibaba’s expanding footprint within Pakistan’s regulated fintech and digital commerce ecosystem. With the NBFC license, Coco Tech will be able to offer installment-based shopping solutions, allowing consumers to split payments into smaller monthly installments instead of paying the full amount upfront.

The development is expected to make online shopping more affordable and accessible, particularly for younger consumers, freelancers, and small businesses that often face limited access to traditional credit.

Pakistan’s BNPL sector is still in its early stages but has been gaining momentum in recent years as digital payments and e-commerce continue to expand. Existing players such as QisstPay and installment services offered by banks like Bank Alfalah have already introduced similar models, although overall market penetration remains relatively low compared to more mature international markets.

Growth in the sector has been supported by rising smartphone usage, increased adoption of digital wallets and branchless banking, and a gradual strengthening of fintech-friendly regulations.

Alibaba already has a notable presence in Pakistan’s digital economy through investments such as Daraz and stakes in financial infrastructure linked to Telenor Microfinance Bank. The entry of Coco Tech into the BNPL space further extends its involvement into consumer financing, reflecting long-term confidence in Pakistan’s e-commerce growth potential.