Telenor Group and Ant Financial have signed an agreement to bring mobile payment and inclusive financial services to individuals as well as small and micro-businesses in Pakistan through Telenor Microfinance Bank Limited. "Today we announced our partnership with Ant Financial to take Telenor Microfinance Bank Limited and our Easypaisa service further. I believe it will help accelerate financial and digital inclusion in Pakistan," said Irfan Wahab Khan.
Replying to media questions, the CEO Telenor Group said that the transaction is subject to approval from the State Bank of Pakistan (SBP) and hoped to get it soon. They further said that stringent measures have been taken as per the international standard to avoid money laundering. The officials further said that the TMB has currently around 40,000 biometric verification systems (BVS) and the number would be increased to 50,000. Nobody can send money under fake identity, they added.
Shahid Mustafa said that they have the highest standard in the world and their standards would be even higher than the requirements of the SBP, adding they have secure system for the customers, country and themselves.
The strategic partnership between Telenor Group and Ant Financial combines TMB's knowledge and local market presence with more than 20 million customers, and Ant's technology in Alipay, the world's largest digital payment platform, and other financial services to bring mobile payment and inclusive financial services to individuals as well as small and micro businesses in Pakistan, the CEO Telenor added.
The president TMB said that TMB offers Easypaisa, Pakistan's first mobile financial services platform launched in 2009, which has been developed into the largest branchless banking service in Pakistan in terms of agent network, active accounts and transaction value, according to the State Bank of Pakistan. The TMB also provides micro-finance and related financial services to the less privileged and un-banked segment of the Pakistani society.
"Partnering with a world leading payment provider like Ant Financial will strengthen Telenor Microfinance Bank's future payment platform and set new standards in the digital banking business in Pakistan. The establishment of this partnership is well in line with the expressed Telenor strategy of focusing our financial services efforts in emerging markets, making sure that we're able to build and modernize the businesses in line with customer needs," said Sigve Brekke.
"Ant Financial is pleased to be in this strategic partnership with Telenor Group. Alipay's technologies make us uniquely placed to achieve our mission of bringing the world equal opportunities. Today, we are very happy to share our technology know-how with Telenor Microfinance Bank to bring improved user experience on the Easypaisa mobile payment platform, as well as provide inclusive financial services in a transparent, safe, low cost and efficient way to the un-banked and under-banked population in Pakistan," said Eric Jing.
"We are working hard and trying to launch the services for customers as soon as possible," Jing added.
Today, more than 100 million Pakistanis are un-banked, accounting for 5% of the world's un-banked population, according to the World Bank. This is expected to change drastically in the years to come, especially with rising smartphone penetration. To prepare for that, companies like TMB needs to build their digital competence and execution capabilities to serve the need of the users. Completion of the transaction is subject to customary regulatory approvals, the Telenor officials added.
Earlier, the MoU was signed at the Prime Minister Secretariat in the presence of Prime Minister Shahid Khaqan Abbasi, government officials and management of Telenor and Ant Financial. The strategic partnership between Telenor Group and Ant Financial combines TMB's knowledge and local market presence with more than 20 million customers, and Ant's technology in Alipay and other financial services, to bring mobile payment and inclusive financial services to individuals as well as small and micro-businesses in Pakistan.
According to official statement, Prime Minister Shahid Khaqan Abbasi appreciated the partnership between Telenor Group and Ant Financials, and said that it is a manifestation of favorable government policies for foreign investment in Pakistan. He welcomed Ant Financial's decision to invest in Pakistan and lauded Telenor's efforts towards the socio-economic development of the country. He said that the collaboration would help broadening access to financial services through digital payment solutions.