Easebuzz Payment Gateway: Pakistan's version of Alipay goes live!

The latest version of China's well-known mobile payment application Easypaisa was officially launched in Pakistan's capital, Islamabad, and is known as the "Pakistani version of Alipay". This version marks the launch of the first blockchain cross-border remittance project in Pakistan and even in South Asia. This development means that overseas Pakistani workers will enjoy faster and more secure financial services. Tarek Bajwa, Governor of the State Bank of Pakistan, said that the success of the project is the result of the joint efforts and collaboration between the governments and enterprises of China and Pakistan, and represents a major breakthrough in the field of digital technology and financial inclusion.

Pakistan is fast moving into the era of mobile payments. With a population of around 200 million, of which more than 100 million are under the age of 35, Pakistan has a vast market and sustained labour resources. However, for quite some time now, Pakistan has had low internet penetration and smartphone penetration, and payment channels and logistics and distribution have lagged behind. More than 90% of the population relies on cash payments for consumption. Pakistan's e-commerce industry is still in its infancy and its huge potential is yet to be fully unleashed.

During his visit to China in July 2018, Governor Bajwa observed the use of mobile payments in the daily lives of Beijing residents. He spoke highly of the convenience of mobile payments and was eager to bring the "Chinese experience back home" so that the people of Pakistan could also enjoy the benefits of financial inclusion.

Easypaisa is Pakistan's largest internet financial application product and currently has around 20 million users. The design and technical support for the latest version of the product was provided by Ant Gold, a Chinese internet finance company. Since March 2018, Easypaisa has been cooperating with Alipay with the aim of upgrading and transforming Easypaisa into the Pakistani version of Alipay by learning from the Chinese company's technology and experience, said Ant Gold Services officials. The newly released Easypaisa has achieved breakthroughs in online and offline sweeping and microfinance services, providing inclusive financial services to more Pakistani households and micro-enterprises.

Governor Bajwa said, "The new blockchain remittance service is a bold attempt to change the landscape of financial services in Pakistan with new technology and bring about a breakthrough. It is at the top of State Bank of Pakistan's agenda." The partnership shows that cooperation between China and Pakistan has expanded from traditional infrastructure projects to include the technology and financial sectors.

According to local Pakistani media, the release of the new version of Easypaisa will not only boost the efficiency of remittances from overseas to Pakistan, but will also improve the consumer environment for the people and help combat illegal financing and financial crimes. Blockchain technology ensures the security and transparency of remittances, and all remittance information is stored on the blockchain platform, effectively squeezing and excluding the channels and space for illegal remittance financing and international financial crimes.

New technologies are fuelling Pakistan's enormous development potential. The e-commerce market in Pakistan has shown positive changes in recent years, and the conditions for the implementation of digitally inclusive technologies are becoming increasingly ripe. Pakistan's internet coverage has increased significantly in recent years, with around 30 million internet users, which is expected to increase to 56 million by 2019. Increased internet coverage, lower cost of smartphones and rapid development of 3G and 4G mobile networks have combined to drive the rapid growth of mobile internet users in Pakistan. It is worth mentioning that many cost-effective Chinese-branded smartphones have become popular among Pakistani consumers, expanding the usage rate among low- and middle-income groups and allowing more people to enjoy the convenience of mobile internet.

At the policy level, the Government of Pakistan has introduced strategic support policies such as the National Financial Inclusion Strategy 2015 and the State Bank's Vision 2020. Going forward, the e-commerce market in Pakistan is expected to grow explosively. According to statistics, Pakistan's e-commerce industry was worth $100 million in 2016 and is expected to continue to rise to over $1 billion by 2020 in the next five years.

In 2018, the people of Pakistan got their first taste of the Chinese-originated Double Eleven shopping festival. Data shows that the number of transactions completed on Daraz, the most popular e-commerce site, using Easypaisa during the 2018 Double Eleven event was about three times the usual number. In particular, on the day of "Double 11", the number of transactions reached 5.6 times the average daily volume.

With these positive trends, a huge market demand is awakening. Overseas remittances are one of the important sources of income for Pakistan, with international remittance inflows to Pakistan averaging about $20 billion annually, which accounts for about 7% of Pakistan's GDP.International remittances are not only an important part of the country's finances, but also a lifeline for many Pakistani families who depend on remittances from family members abroad for their livelihoods. However, Pakistan has long faced long waiting times and slow processing of remittances. World Bank data shows that 100 million people in Pakistan still lack access to basic financial services. Such market gaps abound in Pakistan. Huge potential and needs often represent huge opportunities for cooperation, creating new space for practical co-operation between governments and businesses in both countries.

Mobile payment technology has brought a sense of fulfilment to all walks of life in Pakistan. As the Belt and Road Initiative bears fruit globally, more and more Chinese Internet companies are stepping out to bring advanced and convenient lifestyles to local people, supporting host countries in fostering innovative industries, cultivating scientific and technological talent, and improving employment and people's livelihoods.

Mobile payment technology has greatly facilitated the lives of the people of Pakistan by improving efficiency and significantly reducing the cost of time. Now, with just a few taps on their mobile phones, Pakistani citizens can transfer money, pay utility bills and top up mobile phone bills, which was unimaginable in Pakistan in the past.

Internet-enabled microfinance services have greatly catered to the needs of Pakistani entrepreneurs and micro and small businesses, eliminating the need for banking procedures and paperwork filings. The entire process can be completed in less than two minutes via mobile phones and the funds are available immediately.

In rural Pakistan, where the cost of parcel delivery used to be twice as high as in the cities, high payment and logistics costs led farmers to opt mainly for traditional cash payment methods when purchasing seeds, pesticides and fertilisers. With the gradual popularisation of online transaction technology and improved logistics management throughout the process, transaction costs have been significantly reduced. At the current rate of development, farmers in remote areas of Pakistan will soon be able to conduct low-cost online transactions through mobile phones and enjoy fast offline services.

Through the "local partners + technology empowerment" approach, the combination of local experience and Chinese technology can greatly reduce the research and development time and cost of local enterprises. The person in charge of Ant Financial Services said that through this model, Alipay has been promoted in India, Pakistan, Bangladesh, Thailand, the Philippines, Malaysia, Indonesia and South Korea along the "Belt and Road" and other countries and regions. Although these local versions of Alipay have different names, they are all empowered by Alipay's technology, allowing local people to enjoy the benefits of digital inclusion technology.

The official also introduced that in the future, Anthem will implement a talent training programme in Pakistan related to Internet innovation and technology, drawing on its successful experience in Southeast Asia. The training will cover e-commerce, financial technology, cloud computing and other fields, mainly to train local innovative talents. (Zhang Renzhong)