Four Fintechs Successfully Complete SBP’s First Regulatory Sandbox.
✧ GENERATE BRIEFING +
The State Bank of Pakistan (SBP) has successfully concluded the first cohort of its Regulatory Sandbox, with four fintech participants demonstrating their innovative digital financial solutions following a rigorous testing phase under central bank oversight. Launched in August 2025 under SBP Vision 2028, the inaugural cohort initially shortlisted six participants to test solutions between January and June 2026 across three key pillars: technology-enabled inward remittances, open banking, and remote merchant onboarding.Out of the initial group, four participants successfully completed the sandbox cycle: Taptap Send UK Limited and United Bank Limited (UBL) focused on tech-enabled inward remittances, while Digi Khata, Swich Retail, and Neem Exponential Financial Services successfully tested open banking frameworks. The SBP emphasized that successful sandbox completion does not automatically confer full commercial licensing; participants must still secure formal regulatory approvals before launching their products publicly. The initiative underscores Pakistan's advancing fintech regulatory framework aimed at safely scaling digital payments, financial inclusion, and secure innovation.
The State Bank of Pakistan (SBP) has completed the first cohort of its Regulatory Sandbox, with four fintech participants successfully demonstrating their solutions after testing under the central bank’s regulatory oversight.
The first cohort was launched in August 2025 under SBP Vision 2028, with the aim of giving fintechs and financial institutions a controlled environment to test innovative digital financial products and services before seeking full regulatory approval.
The programme focused on three areas: technology-enabled inward remittances, open banking and remote onboarding of merchants. Six participants were initially shortlisted and tested their solutions between January and June 2026, with SBP teams providing regulatory guidance throughout the process.
Four participants successfully completed the testing phase. Taptap Send UK Limited and United Bank Limited (UBL) tested a technology-enabled solution for inward remittances, while Digi Khata, Swich Retail and Neem Exponential Financial Services tested solutions related to open banking.
The successful completion of sandbox testing, however, does not constitute regulatory approval. SBP said the participants must obtain the relevant authorisations and approvals before commercially launching the products or services tested through the sandbox.
The sandbox is designed to allow innovators to test products in a controlled environment while identifying regulatory, operational and consumer-protection issues before wider market deployment. This approach can help financial institutions and fintechs develop technology-enabled services while maintaining regulatory safeguards.
SBP said the Regulatory Sandbox will continue to support fintechs and banks in developing innovative, practical and user-focused digital financial solutions, with the broader objective of expanding access to financial services and improving efficiency and customer experience.
The completion of the first cohort marks a significant step in Pakistan’s fintech regulatory framework, particularly as digital payments, open banking and technology-driven financial services continue to expand.
