Karandaaz and DigiKhata Launch Embedded Finance Facility for Pakistan Merchants

Karandaaz Pakistan and DigiKhata Financial Services (DKFS) signed a partnership to launch an Embedded Finance Facility (EFF), a first-of-its-kind initiative in Pakistan. The facility converts everyday merchant payments into a pathway to formal credit for small retailers. Pakistan's retail and wholesale trade contributes heavily to GDP and to the country's micro-SME base, yet it remains overwhelmingly cash-driven.

Most merchants lack a verifiable digital financial history, leaving them invisible to formal lenders. The EFF is designed to address two problems at once: low adoption of digital payments and limited access to formal financing. The partnership was announced on Jul 13, 2026.