- WorldRemit and U Microfinance Bank set to work together as part of new offer
- Pakistani diaspora can use the service from more than 50 countries around the globe
- “The new partnership with U Bank further expands our network in Pakistan, connecting more recipients in urban and rural areas to our award-winning money transfer service”, said WorldRemit
Globally-known fintech start-up and online money transfer service WorldRemit has announced that it will set up a new system for cross border payments in Pakistan.
It has partnered with an institution on the ground, U Microfinance Bank, as part of the move.
Customers of U Microfinance, which has almost 200 physical outlets in Pakistan, will be able to receive money from Pakistani friends and family members living in the diaspora.
This will include a range of major western economies, such as the UK and the USA.
In total, more than 50 countries will be eligible.
It will be possible for the transactions to be placed via smartphone, enabling ease of access all round.
The move will also spell cheaper remittance services in some cases.
Making a cash transfer to Pakistan of over $210 US dollars in value will mean that no party in the transaction has to pay a fee.
In a statement, Hamza Islam, the country director for Pakistan at WorldRemit, emphasised that the new partnership would mean better services for those in countryside areas as well as in cities.
“U Bank is a natural partner for WorldRemit, as we share a common goal to offer accessible, convenient financial services to everyday Pakistanis and foster financial inclusion”, he said.
“The new partnership with U Bank further expands our network in Pakistan, connecting more recipients in urban and rural areas to our award-winning money transfer service”, he added.
For U Microfinance Bank, Kabeer Naqvi, who serves as president and CEO, said that going through “a formal channel” in this way would help many Pakistanis.
"U Bank is committed to the national cause of bringing more international remittances to Pakistan through a formal channel. We aim to serve customers' families at their home locations and bring a sense of security and convenience to them”, he said.
Pakistan is one of the world’s most remittance-heavy economies.
Figures show that over seven million Pakistani expats transferred more than $20bn back into the country over the course of 2018 – and that this now constitutes around 7% of the Asian country’s gross domestic product.
That’s a phenomenal figure, and one that is matched by few other nations around the world.
For WorldRemit, it must seem like a race to get the largest slice of the Pakistani remittance market share pie – and by partnering with a local bank in this way, it’s easy for the firm to get the legitimacy it needs to secure customer numbers.
Don’t miss out on crucial information about the status of the global cross-border payments world.
Check out our news pages and learn more today.
