Pakistani Bank Partners With Alipay For Blockchain
Telenor Microfinance Bank, Pakistan based subsidiary of Norwegian telecoms multinational Telenor Group announced its partnership with Alipay. The announcement said that the firm has launched cross-border payments using blockchain technology using payments company Alipay.
The initiative is called as Pakistan’s first blockchain-based international remittance service. On Tuesday, the bank announced that the product is a joint effort between Telenor Group’s Malaysian fintech subsidiary Valyou and it’s Pakistani mobile banking arm Easypaisa which provides real-time money transfers between the two countries.
According to the bank, blockchain would especially increase the speed and efficiency of payments. The bank added that the money transfers would be highly secure and transparent.
Roar Bjaerum, the Senior Vice President at Telenor Financial Services, said:
“Currently, Pakistan receives about $1 billion in home remittances from Malaysia, and this Easypaisa-Valyou collaboration is going to change it for the better.”
Tariq Bajwa, State Bank of Pakistan Governor, said that home remittances contributed more than 6 percent in GDP also over 50 percent of trade deficit, 85 percent of exports and over one-third of imports during FY 2017-18.
Alipay, operated by Alibaba Group’s Ant Financial. The firm will have waived transaction fees for the use of its technology during an initial one-year trial period. The bank added that by eliminating intermediary costs, the new remittance service reduces a transactional cost for end-users.
Kaushik Punjani, Director of Euro Exim Bank, said:
“Working collaboratively with Ripple and selected counterparts, we have designed, tested and are implementing both xCurrent and xRapid in record time, and we look forward to the benefits these will bring our customers.”