aik, Pakistan’s first fully digital Islamic banking platform launched by BankIslami Pakistan Limited, has partnered with PalmPay Pakistan to introduce Shariah-compliant smartphone financing through its digital application. The collaboration is intended to make smartphones more accessible to customers by offering an instalment-based financing option structured around Islamic banking principles. The initiative brings together BankIslami’s experience in Islamic finance and PalmPay’s presence in the device financing segment, targeting consumers who want to purchase smartphones without relying on conventional interest-based financing arrangements.
Under the partnership, customers will be able to access smartphone financing through the aik application, bringing the application process into a digital banking environment. The service is designed to combine convenient access to financing with a Shariah-compliant approach, giving customers an alternative for purchasing devices through instalments. The companies have positioned the initiative as a response to two challenges in Pakistan’s smartphone market: the affordability of devices and the availability of financing options that meet customers’ Islamic financial preferences.
Smartphones have become an increasingly important part of everyday economic and social activity in Pakistan. They provide access to digital payments, online services, communication platforms, educational resources and other tools that support participation in the digital economy. However, the upfront cost of purchasing a device can remain a barrier for consumers who cannot comfortably pay the full amount at once. Instalment-based purchasing arrangements can help address this affordability challenge by spreading payments over time, although access to financing that aligns with individual religious and financial preferences remains an important consideration for some customers.
The aik and PalmPay Pakistan partnership seeks to address this demand by connecting digital Islamic banking services with smartphone financing. Through the aik app, customers will have a digital channel to apply for the facility rather than depending entirely on traditional financing processes. The companies say the collaboration is intended to make the process more convenient, while also improving access to devices for customers seeking Riba-free financing solutions. The announcement, however, does not specify financing limits, repayment periods, eligibility requirements, applicable charges or the range of smartphone models covered by the arrangement.
Ashfaque Ahmad, Chief Officer of aik by BankIslami, said Shariah-compliant financing represents a market with significant potential as smartphone usage continues to grow. He noted that an increasing number of consumers are looking for financing arrangements that are consistent with their faith. The partnership is intended to respond to this demand by providing a digital route to smartphone ownership through an Islamic banking platform.
Jun Zeng, Chief Executive Officer of PalmPay Pakistan, described smartphone ownership as an important entry point into the digital economy. He said the partnership with aik aims to make that access more affordable while maintaining Shariah compliance. According to Zeng, the collaboration combines BankIslami’s Islamic banking expertise with PalmPay’s experience in device financing, allowing customers to apply through a digital channel and receive financing decisions more quickly.
The arrangement reflects a broader connection between financial services and technology access. As more services move towards digital channels, access to suitable devices becomes increasingly relevant to financial inclusion. Consumers need smartphones to use mobile banking applications, make digital transactions, access online marketplaces and interact with a growing range of digital services. Expanding access to devices through financing can therefore support wider participation in the digital economy, provided that the financing arrangements remain affordable and transparent.
For BankIslami, the collaboration adds another use case to aik’s digital Islamic banking platform by connecting banking services with consumer technology financing. For PalmPay Pakistan, the partnership provides an opportunity to extend its device financing experience through a platform backed by an established Islamic banking institution. Both companies are seeking to make technology-enabled financial solutions more accessible to consumers who prefer Shariah-compliant options.
The partnership also highlights the potential for collaboration between banks and technology-focused companies in developing financial products around specific consumer needs. Rather than treating smartphone financing solely as a device purchase arrangement, the initiative links access to technology with digital banking and financial inclusion. Its effectiveness will depend on how accessible the facility becomes, the financing terms offered to customers and the ease with which applicants can complete the process through the aik application.
The introduction of Shariah-compliant smartphone financing through aik and PalmPay Pakistan adds another option to Pakistan’s expanding digital finance landscape. By addressing device affordability through an Islamic financing channel, the partnership aims to help more consumers obtain smartphones and participate in digital services. Further details about the facility’s terms and availability will be important in determining how widely customers can benefit from the new arrangement.
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