Sending money back home is a tradition for people living and working abroad and for Pakistanis working in Malaysia everything has been made easy through Alipay. Through Telenor Microfinance Bank and Valyou, a Malaysian firm working together. Pakistanis now have a test of blockchain technology working for them. The two firm’s collaboration has brought the first cross border remittance money platform Alipay that is based on blockchain technology. Services on Alipay platform have been made possible through Ant Financial Services Group (Ant Financial).
Blockchain technology is a new and emerging technology that is taking the world by a storm and connecting it into one network. Through blockchain, Telenor Microfinance Bank the main remittance service provider in Pakistan will achieve its goal of providing financial services to the unbanked people in Pakistan. Moreover, blockchain technology will revolutionize how business is done and make the services more secure, transparent and quick. Information from both parties will be encrypted with advanced systems to protect customer’s data. And in a country where remittance money contributes over 6% of the GDP, Alipay is a game changer platform that will change the financial sector in Pakistan. Pakistanis international remittance money services were launched in Islamabad by Tariq Bajwa Governor of State Bank of Pakistan.
Benefits of Alipay Platform
First and foremost through blockchain technology, Alipay platform will increase the time taken to send money significantly and will make the services available to all. Secondly, the transparency brought about by blockchain technology will enhance the trust of users in the financial sector. Lastly through Alipay transaction fees will be reduced drastically meaning more money in the pockets of the Pakistanis. And with the trial period ongoing, Pakistanis can enjoy the fee waiver during the one year trial period.
While launching the services Governor Tariq Bajwa said,
“Alipay platform places Pakistan on the globe among the very few countries that have international remittance platforms in place. Furthermore, with the services bringing in USD 20 billion per year the overall macroeconomic stability will improve leading to the spillover improving the lives of millions of Pakistanis.”
Besides that, he hopes the financial institutions in the country are watching keenly the technology developments and are positioning themselves well to harness its power. Through innovative and emerging technologies such as blockchain, they can expand their services and further increase access to financial services in the country.