The State Bank of Pakistan (SBP) has announced the shortlisted participants for the first cohort of its Regulatory Sandbox, marking a major step toward encouraging innovation in the country’s digital financial services sector.
The Regulatory Sandbox was launched in May 2025 as part of SBP’s Vision 2028 strategy to support the development and safe testing of new financial technologies. It allows banks and fintech firms to trial innovative products in a controlled live environment under regulatory supervision before full-scale market deployment.
Applications for the first cohort were invited in August 2025 across three priority areas: technology-enabled solutions for inward remittances, open banking and remote onboarding of merchants. According to the central bank, the response from both local and international firms was strong, reflecting growing interest in Pakistan’s fintech ecosystem.
After a review process overseen by a high-level Steering Committee formed by SBP, six applicants have been selected for sandbox testing:
- Neem Exponential Financial Services Private Limited– Open Banking
- Digi Khata (SMC-Private) Limited– Open Banking
- Swich Retail Private Limited– Open Banking
- The Bank of Punjab– Remote Onboarding of Merchants
- Barq Fintech (Private) Limited– Technology-Enabled Inward Remittances
- Taptap Send UK Limited and United Bank Limited– Technology-Enabled Inward Remittances
These firms will be permitted to test their proposed solutions in a controlled, live environment for a period of up to six months, subject to conditions set by the regulator. The testing phase will enable SBP to assess the operational, regulatory and consumer-protection implications of emerging financial technologies while giving innovators an opportunity to refine their products.
SBP said the initiative aims to promote user-centric, secure and efficient financial services, while ensuring financial stability and regulatory compliance. The sandbox is also expected to support greater financial inclusion, improve cross-border remittance channels, and encourage responsible data sharing through open banking frameworks.
With the launch of the first cohort, the central bank signaled that it intends to continue engaging with industry stakeholders and expand the sandbox program in future phases. The Regulatory Sandbox is designed to strike a balance between innovation and oversight, the initiative would help build a modern, resilient and inclusive digital financial ecosystem for Pakistan.
The shortlisting marks the beginning of live experimentation under regulatory supervision- a milestone that positions Pakistan more firmly within the global shift toward fintech-driven financial services.
