CMPak's PayMax Withdraws EMI License, Forcing Business Closure
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On October 23, 2023, the State Bank of Pakistan (SBP) issued an advisory to M/s CMPECC (Pvt) Ltd, also known as CMPak, the company behind Zong 4G, which was operating in the 'commercial stage' under the Regulations for Electronic Money Institutions (EMIs). The SBP directed CMPak to promptly refund all outstanding funds to its e-money wallet holders. The company was given a 15-day window for this, starting from the date of the advisory letter, which was dated October 23, 2023.
It's essential to note that the responsibility for returning customers' funds lies with M/s CMPECC, in accordance with the Regulations for EMIs.
This action was taken in response to a request from M/s CMPECC, aka CMPak's PayMax, for the closure of its e-money business and the withdrawal of its e-money license under the Regulations for EMIs. It's worth mentioning that EMI licenses are granted by the SBP to non-bank entities in three stages: In-Principle Approval, Pilot Operations Approval, and Commercial Operations Approval.
The State Bank Of Pakistan has also indicated that further instructions regarding the revocation of M/s CMPECC's license under the Regulations for EMIs will be issued separately.
