Introduction
Mobile wallets and
digital payment systems are becoming increasingly popular in Nepal. This is due
to the increasing availability of smartphones and other mobile devices, the
growing demand for convenient and secure payment methods, and the government's
support for the use of digital payments.
Remittance is the money
that migrants send to their families back home. Nepal is a remittance-dependent
country, with remittances accounting for around 30% of the country's GDP. The
use of mobile wallets and digital payment systems for remittance transactions
is growing rapidly. This is because these platforms offer a number of
advantages over traditional remittance methods, such as convenience, speed, and
lower fees.
Benefits of Mobile Wallets and Digital Payment Systems for Remittance
There are a number of
benefits of using mobile wallets and digital payment systems for remittance
transactions. These include:
- Convenience: Mobile wallets
and digital payment systems make it easy for people to send and receive money
from anywhere with an internet connection and a mobile device. This is in
contrast to traditional remittance methods, which can often be
time-consuming and inconvenient.
- Speed: Mobile wallets
and digital payment systems can be used to send money quickly. In most
cases, the recipient will receive the money within minutes of the sender
sending it. This is faster than traditional remittance methods, which can
often take days or even weeks for the recipient to receive the money.
- Security: Mobile wallets
and digital payment systems use encryption and other security measures to
protect user data. This makes them a more secure way to send money than
traditional remittance methods, which are often vulnerable to fraud and
theft.
- Cost-effectiveness: Mobile wallets
and digital payment systems can offer lower fees than traditional
remittance methods. This can save people money when they send money to
their loved ones overseas.
- Accessibility: Mobile wallets
and digital payment systems can be used by people who do not have access
to traditional banking services. This makes them a more accessible way to
send money for people who live in rural areas or who do not have a bank
account.
The Growth of Mobile Wallets and Digital Payment Systems in Nepal
The use of mobile
wallets and digital payment systems for remittance transactions is growing
rapidly in Nepal. This is due to a number of factors, including:
- The increasing
availability of smartphones and other mobile devices.
- The growing
demand for convenient and secure payment methods.
- The
government's support for the use of digital payments.
In 2021, the Nepal
Rastra Bank (NRB) issued a directive to all commercial banks and financial
institutions to facilitate the use of mobile wallets and digital payment
systems for remittance transactions. This directive has helped to accelerate
the growth of these platforms for remittance.
The Impact of Mobile Wallets and Digital Payment Systems on Remittance
The use of mobile
wallets and digital payment systems for remittance transactions is having a
positive impact on the economy of Nepal. This is because remittances can help
to boost economic growth, reduce poverty, and improve financial inclusion.
Remittances can boost
economic growth by providing a source of foreign exchange. This can help to
increase the supply of money in the economy, which can lead to higher levels of
investment and consumption. Remittances can also help to create jobs, as
migrants often invest their remittances in businesses and other ventures back
home.
Remittances can reduce
poverty by providing a source of income for families that would otherwise be
struggling. This can help to improve the living standards of these families and
their communities. Remittances can also help to improve financial inclusion, as
they provide a way for people who do not have access to traditional banking
services to send and receive money.
The Future of Mobile Wallets and Digital Payment Systems in Remittance
The use of mobile
wallets and digital payment systems for remittance transactions is likely to
continue to grow in the future. This is due to the increasing availability of
smartphones and other mobile devices, the growing demand for convenient and
secure payment methods, and the government's support for the use of digital
payments.
As the use of these platforms for remittance continues to grow, it is likely to have a positive impact on the economy of Nepal. This is because remittances can help to boost economic growth, reduce poverty, and improve financial inclusion.
Here are some examples of mobile wallets and digital
payment systems that are used in Nepal for remittance transactions:
City
Express Money Transfer is a remittance company that is
soon going to launch its own mobile wallet. This will allow users to send money
to Nepal even more conveniently and securely.
eSewa is the
most popular mobile wallet in Nepal. It allows users to send and receive money,
pay bills, and make purchases online and offline.
Khalti is
another popular mobile wallet in Nepal. It offers similar features to eSewa,
and it also allows users to invest in mutual funds and stocks.
