/ Ultima / 2019/01 / Pakistani-bank-partner-with-Alipay-to-launch-based-remittance of payments blockchain-platform /
The Pakistani bank is working with Alipay to launch the Blockchain-based remittance payment platform
Pakistani-bank-partner-with-Alipay-to-launch-blockchain – platform-based remittance-payments
Telenor Microfinance Bank, a subsidiary in Pakistan of the Norwegian telecommunications multinational, the Telenor Group, has introduced a blockchain-based cross-border payment solution.
Through a partnership with the Chinese payment company Alipay, the Pakistani bank of Telenor has become the first institution of the Islamic republic to launch a repatriation service with DLP technology (distributed ledger technology). As mentioned in the announcement press release, the international payment solution is part of a collaborative effort involving Easypaisa (a major Pakistani mobile banking service provider) and Valyou (a Telenor subsidiary based in Malaysia) .
Based on Alipay's proprietary blockchain technology
Developed using Alipay's blockchain technology, the service allows "Pakistanis living in Malaysia to send money instantly and securely to their home through Telenor-Valyou repatriation service provider". Commenting on the innovative initiative, Tariq Bajwa, Governor of the Pakistan State Bank, noted:
This puts Pakistan on the map of very few countries in the world that have launched international remittances using blockchain technology. At about $ 20 billion a year, international remittances are important from the point of view of overall macroeconomic stability and their positive impact on improving the lives of millions of families.
Bajwa added that "home remittances" account for more than 6% of Pakistan's gross domestic product (GDP). This is equivalent to "over 50%" of the nation's trade deficit, equal to 85% of the total [the value of total annual exports] and over a third of imports "during the financial year (2017-2018 financial year), Bajwa noted.
As explained in the press release, the use of blockchain technology to transfer payments "will significantly increase the speed and efficiency of remittances from Malaysia to Pakistan".
"Highly Secure & Transparent" platform for sending Back Home payments
Monetary transactions based on the DLT conducted on the newly opened remittance platform will be "highly secure and transparent". Furthermore, "all information stored, shared or uploaded" in the payment network will be "encrypted" [using Alipay’s] advanced protocols to protect user privacy. "
Shahid Mustafa, president and CEO of Telenor Microfinance Bank (in Pakistan), said:
The international remittance service embodies the shared vision of Telenor Group and Ant Financial (developer of the Alipay online payment platform) to empower companies by offering inclusive financial services to the world.
"Absolute priority on the national agenda of the country"
Mustafa, graduate of the MBA from the University of Management Sciences of Lahore, also noted:
It is a bold declaration of the wonders that new technologies can do to transform the financial services landscape in Pakistan, which remains a top priority in the country's national agenda.
Meanwhile, Eric Jing, president and CEO of Ant Financial, "an affiliate company" of the China-based Alibaba group and the "highest rated fintech" company ($ 150 billion) in the world, said:
The new remittance service is one example of how emerging technologies can help countries achieve their goals of digital and financial inclusion. We are thrilled to be part of Pakistan's financial inclusion efforts and are dedicated to exploring the discoveries and applying them to the benefit of more people in multiple locations.