Allied Bank, one of the foremost commercial banks in Pakistan, has embarked on a collaboration with Paysys Labs, a leading innovator in digital payment solutions, to test the Interledger Protocol (ILP) for cross-border payments. This trial signifies a major stride towards revolutionizing financial transactions globally by simplifying and securing international payments.
In a significant move to foster innovation in financial technologies, Paysys Labs has been awarded the Digital Financial Services Grant by the Interledger Foundation (ILF). This grant is a nod to their commitment and capability in advancing digital payment systems. The partnership”s aim is to craft a Proof of Concept (PoC) that will establish a node on the ILP Test Network. This development is hoped to integrate Allied Bank’s customer accounts into the global ILP network, thereby transforming them into functional digital wallets capable of executing secure and efficient international transactions.
This pilot project is not just a technological upgrade but a strategic endeavor that aligns with the ILF”s vision of making payment transactions as straightforward as sending an email. The initiative is poised to enhance the user experience by providing a streamlined, secure platform for sending and receiving funds across borders, and it reflects both Allied Bank and Paysys Labs’ dedication to adopting and promoting cutting-edge technologies within a compliant and innovative framework.
The successful implementation of this pilot could set a benchmark for digital financial services in Pakistan, potentially encouraging more widespread adoption of advanced payment infrastructures in the region”s banking sector.