Get Fully Briefed with Yahoo Finance, delivered straight to your inbox.
Pakistan’s central bank on Friday revoked the in-principle and pilot operations approval of Tag to operate as an electronic money institution in a move that poses existential threat to the firm.
State Bank of Pakistan said in an order that it is revoking Tag’s approval to operate as an electronic money institution, the permission that is required for entities to offer innovative, user-friendly and cost effective low-value digital payments instruments such as wallets, cards and contactless payments. The central bank has also ordered the startup to close all customers' wallet accounts and pull its apps from the app stores with immediate effect.
The central bank’s action is in response to Tag violating regulatory requirements and “other concerns” that emerged during the pilot operations of the firm, it said. The decision has been taken to “protect the interest of the public at large,” it added.
The regulatory action follows a months-long probe into Tag, which offers banking and financial services such as contactless payment, cards and wallets to users in Pakistan.
The startup has been accused of forging documents to the central bank, according to an earlier investor letter obtained by TechCrunch. The central bank ordered Tag in August to “immediately” refund all funds of customers.
Tag is one of the fastest growing startups in Pakistan. It was valued at $100 million in its seed financing round in September last year. The startup counts Liberty City Ventures, Canaan Partners, Y Combinator, Addition and Mantis among its backers.
The State Bank of Pakistan did not immediately respond to a request for comment via phone and email.
Friday's action is another blow to the nascent but fast growing startup ecosystem in Pakistan, which clocked record funding last year. Airlift, once the most valuable startup in the South Asian market, shut down in July this year after it failed to secure fresh funding.
Tag's chief executive couldn't be immediately reached for comment. The startup will explore appealing the State Bank's decision, a source with direct knowledge of the matter told TechCrunch.
Aussies spend three and a half hours a day doing unpaid labour, with females taking on more work than males. Here’s what you need to know.
Property prices may be falling but history shows us just how far they have climbed in comparison to Aussies wages. This is what you need to know.
Aussie property prices are tanking and Aussies who bought their home last year could find themselves in hot water. This is what you need to know.
Aussies have until October 31 to lodge their tax return if they are doing it themselves or risk late penalties. Here’s how to get the most out of your return.
Disaster assistance is now available in 30 flood affected areas following severe flooding. Find out who is eligible.
A Lamborghini and first class flight tickets don't just come to anyone willing to put in hard work. There's a couple more tricks you need to know.
Aussies on pension payments will see a boost to their payments come through this week. Here’s what you need to know.
Despite the best of intentions and the best advice many Australians feel guilty about their money habits, whether they are more likely to spend up big or carefully save their cash. But it turns out that being a spender may not be that bad afterall. Emma Edwards investigates.
Work from home is here to stay, with some workers saying they would consider quitting if forced back into the office full-time.
Here are three money questions which reveal if your partner is your money match, not just your ‘funny’ match.
Australia's trade surplus dipped by $643 million in August to $8.3 billion, undershooting expectations of a $10b surplus.
A shocking number of Aussies are eligible for the refunds, with the average payout coming in at $1,962.76. Here’s how to find out if you’re eligible.
With another rate rise slugging Australians this month, it seems the end of the rate rises may almost be in sight. Stephen Koukolas weighs in.
A 1930s Melbourne mansion is up for sale for an eye-watering price. The historic property was previously home to a zoo. Take a look inside.
The royal inherited a surprising new property from King Charles III, following the death of Queen Elizabeth II.