Karachi-Based Fintech Startup ‘Safepay’ Partners With Stripe

Safepay, a Karachi-based fintech startup has raised hundreds of dollars of funds from Stripe, a global financial technology platform company, along with the participation of other local and international investors.

In 2019, two Pakistani entrepreneurs, Ziyad Parekh and Raza Naqvi started the venture ‘Safepay’ intending to build digital payment solutions for Pakistani merchants.

Patrick Collison, CEO of Stripe, took to his Twitter account, cherishing the big news.

We’re excited to support the rapidly-growing internet ecosystem in Pakistan!https://t.co/VC40xmM4Qu

— Patrick Collison (@patrickc) February 11, 2021

In response, Ziyad Parekh paid regards on behalf of the team and Pakistan.

Thanks @patrickc! Really appreciate the support and backing from you and the @stripe team https://t.co/kS46EBJyE0

— Ziyad Parekh (@ziyadparekh) February 11, 2021

The initial launch by the two co-founders was a beta product in 2019, which was able to scale quickly to provide online payment services to over 300 merchants in the country.

Moreover, the launch of the company in Pakistan will be announced soon as some arrangements are still in pipeline which will facilitate payments through the right financial partners and with the State Bank of Pakistan (SBP).

“We want to work in improving digital payment infrastructure in Pakistan to decrease the reliance on cash and other OTC transactions, regardless if this is in a business-to-customer, business-to-business or government-person context. We feel we are in a strong position to develop innovative payment solutions to facilitate such transactions. Our ultimate goal is to increase the size of the online economy in Pakistan,” said Ziyad, Safepay’s co-founder.

The current modes for the transaction are credit cards and debit cards.

Safepay is focused to introduce engineering talent to boost digital payment methods including mobile wallets and bank accounts in Pakistan.

Interestingly, Stripe is not investing in a business for the first time.

Previously, Stripe has invested in PayMongo and PayStack, operational in the Philippines and Africa respectively.

Thereby, collaboration with a company like Stripe would be essential for guidance from its portfolio companies that have developed digital payment products in markets similar to Pakistan.

“The Safepay team’s solutions will be an important contribution to the future of Pakistan’s economy,” said Noah Pepper, Stripe’s business lead.

Pepper further stressed that as Pakistan continues to pursue a fully digital economy and increases its role in global trade, it will become profitable for the country to bring opportunities for markets and local businesses.

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Raza Naqvi, the Co-founder of Safepay, commented, “Cooperation from Stripe, in particular, will provide us with unique guidance towards becoming a leading technology provider, building world-class products in the context of local payments and commerce.”

Startups like these will make Pakistan an attractive market for investors in the technology sector.

Moreover, initiatives taken by the State Bank of Pakistan and the government will encourage Pakistani startups ecosystem on the global map and create an environment for strengthening digital payments.