Since its inception, blockchain has excelled as a tool to better the finances of anyone that is interested in taking advantage of all that it has to offer. Recently, a cross-border remittance service, which is based on blockchain technology, was initiated by AlipayHK, an entity of GCash, a payment service that is based in the Philippines and Alipay, a Chinese firm owned by Chinese billionaire, Jack Ma. With the availability of this financial service, users of AlipayHK can easily transfer money from Hong Kong to the Philippines via a trustworthy and fast means. The settlement bank for this service is Standard Chartered Bank, and it can be taken advantage of by domestic workers from the Philippines that work in Hong Kong in sending money to their home country in a much easier way.
Alipay is a platform for making payments online. It was founded by the Alibaba group in 2004 and is based in Hangzhou, China. Alipay is a sub-company under Ant Financial and currently has its head office in Pudong, Shanghai, China. At the moment, Alipay is the biggest mobile payment platform in the world. It overtook PayPal as the number one online payment platform in the world in 2013.
What is the Reason for the Launch of the Blockchain Cross-Border Remittance Service
According to Jack Ma, the inaugurator of the Alibaba group, there are still more than 1.7 billion people in the world without a bank account. Regardless of this, the increase in the use of smartphones has led to a better opportunity for the rise of fresh financial applications. These new financial services are all based on blockchain technology, and unlike much older financial services, do not have issues with security and sustainability.
Now, as a result of the structure of blockchain technology, it is very handy in the transfer of funds between two parties. Also, apart from the fact that blockchain technology ensures privacy, it also enables those that are involved in the transfer of funds to be abreast of all information regarding the transferred funds at every point in time.
This Solves a Need
Being able to make a near instantaneous transfer of funds from Hong Kong to Philippines possible is a big addition to the quality of life of Filipinos that work in Hong Kong as domestic servants. As of 2016, there are more domestic workers from the Philippines in Hong Kong than those from other countries. Also, these workers sent up to $735 million to their home country in 2017. With the availability of the Blockchain cross-border launched by Alipay, the remittance of money from Hong Kong to the Philippines can be done almost effortlessly.