Pakistan’s Telenor Microfinance Bank (TMB), part of Norwegian telecommunications firm Telenor, has partnered with Telenor’s Malaysian subsidiary Valyou and its Pakistani mobile banking unit Easypaisa to launch blockchain-based remittance service between Malaysia and Pakistan.
The new service is based on blockchain technology developed by Alipay, operated by Ant Financial Services Group.
With the service, Pakistani residents of Malaysia can make money transfers to Pakistan instantly through Valyou.
Alipay will not charge transaction fees during the initial one-year trial period.
Ant Financial chairman and CEO Eric Jing said: “The new remittance service is one of the examples of how emerging technologies can help countries meet their digital and financial inclusion goals.
“We’re thrilled to be part of Pakistan’s financial inclusion efforts and we’re dedicated to exploring breakthroughs and applying them to benefit more people in more places.”
While enabling users to track their money movement, blockchain will address security concerns by encrypting data.
The service is also said to remove intermediary costs, which would lower the transactional cost of money transfers.
Telenor senior vice president Roar Bjærum said: “The transparency and swiftness this innovative and first-of-its-kind service brings to Pakistani users of international remittance will redefine international money transfer in the country.
“Currently, Pakistan receives about USD 1 billion in home remittances from Malaysia and this Easypaisa-Valyou collaboration is going to change it for the better.”