US fintech company halts services for Pakistani startups citing fraud

A US-based fintech company said it had suspended fintech services for Pakistani startups claiming 10 percent of the signups led to fraud.

Immad Akhund, co-founder and CEO of Mercury Bank, said they stopped onboarding Pakistani startups after 10 percent of the signups resulted in fraud.

“It is especially sad since I was born in Pakistan. We stopped onboarding Pakistan-based beneficial owners when >10 percent of signups from PK resulted in fraud. We didn’t have this issue with any other country we support,” Immad wrote on X (formerly Twitter).

“Not sure what the solution is but PK needs to clean up its act.”

Mercury’s official website has Pakistan listed among 37 countries barred from opening accounts with the fintech company. The list includes countries such as Afghanistan, Russia, North Korea, and Iran to name a few.

Mercury’s partner, Choice Bank, came under federal scrutiny earlier this year for allowing foreign companies to open accounts under risky circumstances.