Telenor and Tameer Microfinance Bank have launched a savings account for subscribers to its Easypaisa mobile money service in Pakistan.

The new interest-bearing account, which is called Khushaal Munafa, is the first savings product on a branchless banking platform in the country, said the operator.

The new service is targeted at low income families, said Telenor Group CEO Jon Fredrik Baksaas (pictured). “Easypaisa’s key objective is financial inclusion, and savings are an integral part of getting people to start using formal financial services,” he said. Pakistan is predominately a cash economy where in excess of 80 per cent of the population do not have bank accounts.

The new savings account offers Easypaisa users an interest rate of up to nine per cent on savings of PKR 2,000 ($20) or more. It is available to both existing and new Easypaisa subscribers.

Once users commit to a particular Khushaal Munafa plan, then the minimum balance according to the selected plan will be locked into the system and subscribers will only be allowed to carry out transactions on the balance in excess of the minimum balance.

The Easypaisa service already offers remittance, payments and insurance service.
Telenor holds a majority stake in Tameer Microfinance Bank, the country’s largest micro financial institution.