Alibaba has announced that a Pakistani financial firm has selected Alipay to introduce a blockchain-based remittance service in Pakistan.

Telenor Microfinance Bank and Valyou, a Malaysian fintech firm, have collaborated to facilitate remittances between Malaysia and Pakistan. The blockchain-based service is aimed at improving the ease and efficiency of cross border transactions.

As reported, this is a first of its kind service in Pakistan that is expected to cut down the transaction costs and enable users track their remittances at every step.

Tariq Bajwa, governor of The State Bank of Pakistan, has commented that remittances play an important role in improving a country’s economy. Further adding, he stated that international remittances aid in maintaining macroeconomic stability in a country which further helps in improving lives of people.