Telenor Microfinance Bank, the Pakistan-based subsidiary of telecommunications giant Telenor, introduced Pakistan’s first blockchain-based cross-border remittance service between Pakistan and Malaysia.
The remittance service is provided by Telenor’s Easypaisa and Valyou, a Malaysian financial technology company that provides remittances to underbanked communities. The technology is powered by blockchain technology developed by Alipay, Ant Financial‘s online payment platform.
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Through blockchain technology, remittances between Pakistan and Malaysia will be faster and more efficient.
At the same time, the security and transparency of the money transfers will be ensured, as all information uploaded to the platform will be encrypted to protect users’ privacy.
“This puts Pakistan on the map of very few countries in the world that have launched International Remittance using blockchain technology,” said Tariq Bajwa, Governor of State Bank of Pakistan.
Bajwa pointed out that home remittances from last year contributed to over 6 percent of the GDP, equivalent to 85 percent of exports and over one-third of imports. International remittances affect the overall macroeconomic stability and the new service will also improve the lives of millions of families.
The remittance service will make non-stop, real-time transfers between the two countries possible, with a competitive exchange rate and no transaction fees during the one-year trial period.
“The new remittance service is one of the examples of how emerging technologies can help countries meet their digital and financial inclusion goals,” said Eric Jing, Chairman and CEO of Ant Financial.
Starting from 2015, Alipay has formed nine strategic partnerships with local partners outside Mainland China. As of today, Alipay, together with its global partners, are serving over 1 billion active users worldwide.
Featured photo credit to Ant Financial