Vopy, a Swedish fintech firm and portfolio company of Front Ventures, has secured a verbal agreement with a major digital bank in Pakistan to launch a streamlined freelance payment solution. This development is aimed at addressing the long-standing challenges faced by Pakistani freelancers—particularly those in the IT sector—in receiving timely and affordable international payments.
According to a statement from Vopy, the bank plans to launch the service as soon as possible, with exclusive rights granted to the digital bank, ensuring higher margins for Vopy.
“Our customer in Pakistan is keen to launch this service quickly,” said Sven Hattenhauer, CEO of Vopy AB.
“They have requested exclusive rights to the service, which we have agreed to. The cooperation agreement is expected to be signed shortly, after which we can start without delay.”
The core offering from Vopy is a virtual IBAN-based payment system, where each freelance consultant in Pakistan will be assigned a personal European IBAN account. This allows companies in Europe and the UK to transfer funds seamlessly to freelancers, avoiding the complexities and delays of direct international transfers to Pakistan.
Once funds are received in the European IBAN, they are instantly credited to local Pakistani bank accounts—a major efficiency leap over traditional remittance options.
Key Benefits Highlighted by Vopy:
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Faster Payments: Freelancers receive local payments within seconds of the IBAN transfer.
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Lower Costs: Significantly reduced transfer fees compared to existing services.
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Client Convenience: Simplified process for European clients, enhancing freelancer competitiveness.
With $4 billion in annual freelance remittances to Pakistan, this service has the potential to become a game-changer for the country’s digital workforce. Vopy’s partner bank is already a strong player in freelancer support and is rapidly expanding, making this partnership highly strategic.
