Valyou Launches Blockchain based Cross-border Remittance Service for the Unbanked Pakistani Communities

Date : 14-Jan-2019
Location: Islamabad

Key Take-Aways:

• Telenor Microfinance Bank, in partnership with Valyou of Malaysia, has introduced Pakistan’s first blockchain-based cross-border remittance service, powered by industry-leading blockchain technology developed by Alipay, the online payment platform operated by Ant Financial Services Group (“Ant Financial”).
• Valyou, is a Malaysian based company that provides remittances to underbanked Pakistani communities.
• The plan was unveiled at an event in Islamabad attended by State Bank of Pakistan Governor Tariq Bajwa, marking a major milestone in the country’s journey to promote financial inclusion.
• The blockchain technology will significantly boost the speed and efficiency of remittances from Malaysia to Pakistan. It will also ensure the money transfers are highly secure and transparent, as all information stored, shared, or uploaded through the blockchain remittance platform will be encrypted with advanced protocols in order to protect users’ privacy.
• Home remittances using formal financial channels has been around, the introduction of blockchain technoloy enables near real time cross-border remittances.
• The blockchain-powered remittance service will make round-the-clock, real-time money transfers between the two countries possible at a competitive exchange rate, with Alipay’s transaction fees waived during the one-year trial period.
• By eliminating intermediary costs, the new remittance service reduces transactional cost for end-users, while the blockchain technology enables both senders and receivers to track their money every step of the way, significantly boosting the service’s efficiency and safety.
• Pakistan is in the process of strengthening its financial system, with the Pakistani government recently enhancing its National Financial Inclusion Strategy through a five-year plan that aims to create three million jobs and additional exports of USD $5.5 billion by improving SMEs’ access to financing.

Spokeperson:

• Governor State Bank of Pakistan Mr. Tariq Bajwa, said that at around USD 20 billion per year, international remittances are important from the perspective of overall macroeconomic stability and their positive spillover in improving lives of millions of families
• Eric Jing, Chairman and CEO of Ant Financial, said this launch is a good case study where emerging technologies can help countries meet their digital and financial inclusion goals.
• Roar Bjærum, Senior Vice President, Head of Financial Services, Telenor Group & Chairman Valyou, said the launch will redefine the USD 1 billion in home remittances from Malaysia currently.
• Shahid Mustafa, President & CEO, Telenor Microfinance Bank called it a wonder in financial services.

From left – Mr. Shahid Mustafa, CEO - Telenor Microfinance Bank, Mr. Shazad Dada, CEO - Standard Chartered Bank Pakistan, Mr. Tariq Bajwa - Governor State Bank of Pakistan,  Eric Jing, Chairman and CEO of Ant Financial and Roar Bjærum, Senior Vice President, Head of Financial Services, Telenor Group & Chairman Valyou


Offerings:

• Blockchain based cross-border remittance service with near real-time completion and comprehensive tracking every step of the way enables Pakistanis living in Malaysia to send money home instantly.

Editor's comments:

• A good case study for blockchain application in the financial industry.
• Blockchain technologies has empowered startups to move to the next level.
• Blockchain implementation allows products and services to become more reliable and transparent, slicing thinner the middlemen layers.
• In other words, Blockchain allows the service provider to conduct trustless transaction in a cross-border scenario.

Reference:

Blockchain Technology Backed Home Remittances from Malaysia to Pakistan Made Possible to Promote Financial Inclusion.