A Pakistani financial institution has rolled out a cross-border remittance service based on blockchain technology developed by Alibaba affiliate, Alipay.
Telenor Microfinance Bank and Malaysian fintech firm Valyou have partnered to offer the service to that will operate between Malaysia and Pakistan. The service is expected to enhance the efficiency and speed of remittances from the former to the latter.
Additionally, Pakistan’s first blockchain-based remittance service will eliminate intermediary costs making it cheaper to send money. Users will also be able to track the remittances at ‘every step of the way’, according to a statement.
At the moment, it is estimated that Pakistanis living and working in Malaysia send around $1 billion annually. This is about 5% of the estimated $20 billion in remittances that is sent by the combined Pakistani diaspora spread across the globe. The State Bank of Pakistan’s governor, Tariq Bajwa, noted during the launch of the service that remittances contribute significantly to the country’s economy.