Pakistan to use M10 platform to automate B2B payments
Pakistan’s National Institutional Facilitation Technologies (NIFT) and M10 Networks today announce a partnership to facilitate digital B2B payments in Pakistan and enable low-cost, secure and instant cross-border transfers.
M10 enables banks to modernize the movement of money by providing a platform to tokenize regulated liabilities, such as central bank money, commercial bank money and digital currencies, and offers fast, low-cost B2B payments. cost and secure and instantaneous, cross-border 24/7. transfers.
NIFT was established in 1995 as a joint venture between six major Pakistani banks and private sector entrepreneurs. It is Pakistan’s first Payment System Operator (PSO) for check clearing and the country’s leading digital payment gateway, providing an electronic platform for clearing, processing, routing and electronic transaction switching in Pakistan.
The partnership between the M10 and NIFT was developed in response to the overhaul of tax laws in 2021 by Pakistan’s Federal Board of Revenue, which requires businesses to make digital payments for expenses over Rs 250,000.
Under the agreement, NIFT will act as the local operator of the M10 platform and will use the M10 shared hierarchical ledger and digital authorization technology to authorize digital payments. NIFT will settle digital payments using its existing settlement mechanisms and in accordance with local regulations. Subject to regulatory approval, M10 and NIFT will work together, with nine participating local banks, to enable the authorization of commercial payments between commercial entities in Pakistan.
“NIFT continues to play a vital and proactive role in modernizing Pakistan’s payment system,” comments Haider Wahab, CEO of NIFT. “We are committed to providing an efficient, fast, secure and convenient interbank payment system in which economic growth can further thrive. This new partnership with M10 Networks opens up a range of exciting new possibilities for Pakistan’s payment infrastructure and places it at the forefront of innovation in this area.
“M10’s turnkey solution offers participating central banks and commercial banks around the world the ability to quickly realize the benefits of digital payments in full compliance with current regulations and without disrupting their conventional systems,” said Marten Nelson, CEO and co-founder of M10 Networks. “Our shared, hierarchical ledger technology supports secure, low-cost B2B and cross-border payments and can process up to one million transactions per second. With NIFT acting as the local operator, the M10 platform will significantly contribute to the modernization of Pakistan’s payment infrastructure and enable participating local banks to easily comply with the country’s new tax regulations.
The project will start in the second quarter of 2022 and will be delivered in three phases with completion in the first half of 2023.