Brief Project Description
RafikiRemit is a collaborative initiative between Paysys Labs and Allied Bank Limited (ABL) to modernize Pakistan’s cross-border remittance ecosystem. By integrating with the Interledger Protocol (ILP) through the Rafiki node, the project enables instant, low-cost, and transparent international money transfers.
The solution replaces legacy banking delays of 3–7 days and high transaction fees of 5–10% with a real-time, cost-effective remittance experience. Built on a microservices architecture, RafikiRemit comprises three key components:
- ABL Core Banking Service (CBS) – manages accounts, transactions, and webhook processing.
- OpenConnect Middleware (OC) – functions as the secure API gateway and request router.
- Wallet Service – provides the digital interface for customers to view balances and share payment pointers.
Architectural Overview
The RafikiRemit system is built on a modern microservices architecture, consisting of three distinct services that work in concert to deliver comprehensive remittance capabilities. Each service operates independently on its own port, ensuring scalability, maintainability, and fault isolation.
Project Update
This is the final report being submitted for this project. Overall, the project remained on track and met the proposed timelines.
During this period, we successfully completed several key documentation, planning, and technical milestones that establish a strong foundation for the implementation of RafikiRemit.
The following are the interim reports that were submitted during this project:
First Interim Report: Click here
Second Interim Report: Click here
Project Impact & Target Audience(s)
Target Audience
RafikiRemit has been developed to serve a diverse ecosystem of users and stakeholders within Pakistan’s remittance landscape:
- Overseas Pakistanis: Millions of expatriates who send money home regularly to support families, education, and small businesses.
- Local Recipients: Individuals and households who depend on these inflows as a primary source of income, often located in semi-urban or rural areas with limited banking access.
- Financial Institutions: Banks and fintech providers seeking to modernize their cross-border payment systems and adopt interoperable, digital-first infrastructure.
- Regulators and Policy Makers: Institutions interested in advancing national goals for financial inclusion, compliance, and innovation.
Impact
- Speed: Instant transfers compared to traditional 3–7 day processing
- Cost: 60–70% reduction in transaction fees
- Transparency: Real-time payment tracking and notifications
- Accessibility: Digital wallet interface eliminating branch visits
- Institutional Benefit: ABL’s transition into a node on the ILP network, improving efficiency and competitiveness
RafikiRemit positions Pakistan as a regional leader in digital remittances and contributes to national goals for financial inclusion.
Progress on Objectives, Key Activities
| Objective | Status | Key Achievements |
|---|---|---|
| Network Integration with ILP | Completed | ABL successfully registered payment pointers with Rafiki |
| Cost and Speed Optimization | Achieved | 60–70% lower fees, near-instant transactions |
| Core System Development | Completed | CBS, OC, and Wallet fully operational |
| Secure Webhook Processing | Completed | Implemented idempotency, HMAC verification, retry logic |
| Digital Wallet Deployment | Completed | Real-time wallet with QR code and pointer sharing |
| Compliance and Security | Completed | JWT, and rate limiting implemented |
| Documentation and Testing | Completed | API documentation, integration tests, and UAT finalized |
Communications and Marketing
The announcement of our partnership and the launch of the RafikiRemit project have been very well received by the fintech community, generating significant engagement and positive feedback across multiple platforms.
Industry and Community Engagement:
- Paysys Labs Official Announcement: We shared the project launch on our Paysys Labs LinkedIn Page, which received strong engagement from professionals across the banking and technology sectors.
- Media Coverage: Fintech News Pakistan — one of the country’s leading fintech publications with over 27,000 followers — featured our collaboration with Allied Bank Limited in a dedicated article highlighting its innovation and impact: Fintech News Pakistan LinkedIn Post.
- Official Website Feature: A detailed overview of the project was also published on our website: Rafiki Remit – Advancing Seamless Remittances in Pakistan.
Global Representation:
We had the privilege of representing Paysys Labs and the RafikiRemit project at the Interledger Foundation Summit 2025 in Mexico, where we showcased Pakistan’s progress in open payments innovation. The event and our participation were highlighted in this post: Paysys-Inteledger Mexico Summit Post.
These communications have substantially raised awareness of RafikiRemit and strengthened its visibility within the global fintech ecosystem. The response from industry peers, partners, and the broader Interledger community has been highly encouraging, reflecting strong confidence in our approach and the project’s potential to transform remittance services in Pakistan.
What’s Next?
Following this project, where Paysys Labs partnered with Allied Bank Limited to modernize Pakistan’s cross-border remittance ecosystem through integration with the Interledger Protocol (ILP) via the Rafiki node, enabling instant, low-cost, and transparent international transfers, the focus now shifts towards scaling and regional expansion.
With Paysys Labs’ strong experience across Pakistan, the UAE, and the African region, RafikiRemit can be further implemented and expanded across these markets to drive wider adoption and impact.
Community Support
The RafikiRemit initiative has been made possible through strong collaboration:
- Interledger Foundation: Technical support and protocol guidance
- Allied Bank Limited: Infrastructure, operational readiness, and customer insight
- Paysys Labs: Engineering, design, and innovation leadership
This partnership demonstrates the strength of community-led innovation in transforming financial services for emerging markets.
Additional Comments
RafikiRemit marks a significant milestone in Pakistan’s journey toward digital financial inclusion. It demonstrates that established banks and fintech innovators can collaborate to deliver secure, scalable, and user-centric payment systems.
The project team remains committed to expanding ILP-based capabilities, driving financial inclusion, and ensuring that families across Pakistan can receive money instantly, safely, and affordably.
Relevant Links/Resources
- Paysys Labs website click here
- Paysys Labs LinkedIn click here
- Allied Bank website click here
- Allied Bank Limited LinkedIn click here
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