KARACHI – SadaPay, one of Pakistan’s prominent digital payment platforms, is facing reputational concerns after Turkish authorities arrested the founder of its parent company, Papara, in connection with a $330 million illegal betting and money laundering case.
The crackdown began with the arrest of over a dozen individuals tied to Papara, a major fintech company that acquired SadaPay last year. Turkish officials revealed that Papara’s accounts were allegedly used to funnel proceeds from illegal gambling. Investigations uncovered over 26,000 user accounts linked to suspicious transactions totaling $330 million—approximately PKR 93.39 billion.
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Ahmet Karslı, Papara’s founder, is among those under investigation. In response, Turkey’s central bank has imposed transaction limits on the platform. Although Turkish regulators have assured users that their funds are protected, the action signals significant operational challenges for Papara.
The developments have sparked concern within Pakistan’s fintech industry about the future of SadaPay, which has gained popularity for its mobile-first approach and rapid user growth. Although SadaPay remains under Pakistan’s regulatory jurisdiction and is not named in the Turkish probe, stakeholders are awaiting any official response from the State Bank of Pakistan (SBP).
The scandal has raised broader concerns about cross-border compliance, data security, and investor confidence. Papara, majority-owned by PPR Holding with Karslı holding substantial shares, has seen its accounts, assets, and affiliates frozen following the arrests.
Neither Papara nor SadaPay has issued public comments, leaving users and regulators in both countries seeking clarity on the investigation’s impact on operations and user fund security.
