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Telenor, a global telecommunications giant, has announced, through its Pakistani subsidiary, the launch of a cross-border repatriation service powered by blockchain.
According to the announcement, Telenor Easypasia, Telenor Microfinance Bank (TMB) and Valyou, a subsidiary finetech of Telenor in Malaysia, jointly launched a blockchain-based international remittance service in Pakistan. It is said that the blockchain was developed by Ant Financials online payment platform, Alibay.
The announcement was made at an event in Islamabad that had prominent officials such as Tariq Bajwa, Governor of the State Bank of Pakistan. The new service is intended to improve efficiency and increase the speed of remittance between Pakistan and Malaysia. It will also ensure transparency and security of transactions. All information stored, shared or uploaded through the remittance platform will be encrypted with advanced protocols to protect users' privacy. In addition, the service will allow senders and recipients to monitor the way their money is moving through the process.
The blockchain remittance service works by allowing non-stop real-time money transfers between two countries, possibly at a competitive exchange rate. In the announcement, companies also stated that in the next one-year trial period, Alipay's transaction fees would be canceled.
According to Bajwa, home remittance contributes to over 6% of GDP, which equates to over 50% of Pakistan's trade deficit, to 85% of exports and over a third of imports during the year financial year. Reportedly, from 6%, $ 1 billion comes from Malaysia.
Eric Jing, CEO and president of Ant Financial, said the new remittance service showed how emerging technologies can help countries achieve their additional digital and financial goals.
While commenting on the matter, Chairman and CEO, Telenor Microfinance Bank, Shahid Mustafa said:
"The international remittance service embodies the shared vision of Telenor Group and Ant Financial to strengthen companies by offering inclusive financial services to the world".
Telenor Group hopes that this service will redefine international money transfer in the country. They believe that this new service will encourage the use of formal channels for remittance by exploiting all the incentives offered in the promotion of international remittances by the Pakistani State Bank.
