Telenor Microfinance Bank, in partnership with Valyou of Malaysia has introduced Pakistan's first blockchain-based cross-border remittance service, powered by industry-leading block-chain technology developed by Alipay, the online payment platform operated by Ant Financial Services Group (Ant Financial).
The block-chain remittance service is provided by Telenor's Easypaisa and Valyou, a financial technology company that provides remittances to under banked communities. The plan was unveiled at an event in Islamabad and attended by State Bank of Pakistan Governor Tariq Bajwa, marking a major milestone in the country's journey to promote financial inclusion, says a press release issued here on Tuesday.
The block-chain technology will significantly boost the speed and efficiency of remittances from Malaysia to Pakistan. It will also ensure the money transfers are highly secure and transparent, as all information stored, shared, or uploaded through the block-chain remittance platform will be crypted with advanced protocols in order to protect users' privacy.
While congratulating Ant Financial, Telenor Microfinance Bank, Valyou Malaysia and Standard Chartered Bank for this new initiative and collaboration to promote the use of formal remittance channels, Bajwa said, "At around USD 20 billion per year, international remittances are important from the perspective of overall macroeconomic stability and their positive spillover in improving lives of millions of families.
Home remittances contributed to over 6% in GDP, equivalent to over 50 percent of our trade deficit, 85 percent of exports and over one-third of imports during FY 2017-18." He also said that the Government of Pakistan and State Bank have taken a number of initiatives to promote the transfer of home remittances using formal financial channels and the new block-chain technology based remittance service would complement these efforts as transfer of cross-border remittances in near real time would bring convenience and facilitation for both remitters and their beneficiaries.
"This puts Pakistan on the map of very few countries in the world that have launched International Remittance using block-chain technology", he added. Tariq Bajwa also stated that he expects that the financial sector will take advantage of current favorable market environment by investing in innovative technologies and product offerings to expand services and broaden access to financial services in the country.
The blockchain-powered remittance service will make round-the-clock, real-time money transfers between the two countries possible at a competitive exchange rate, with Alipay's transaction fees waived during the one-year trial period.-PR
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