In a benchmark decision, Nepal Rastra Bank (NRB) has directed digital payment service providers to implement interoperability (Interwallet money transfer). The decision comes with the motif to widen digital payment service among the people, and enhance payment security.
With this, all the licensed digital payment service providers in Nepal will need to integrate Interoperability into their apps or websites for digital transactions. This means any platform that provides electronic payment will enable the service to perform the transaction beyond their network. That is eSewa users can send the balance to Khalti or Khalti users can send it to eSewa, IME pay, etc.
The implementation of Interoperability will apply to digital wallets, mobile banking apps, and QR code services.
NRB says the concerned service providers must implement Interoperability within 6 months.
The immediate beneficiary of this decision would be digital wallet users. That is because when Interoperability comes into effect, users of one digital wallet will be able to send money to another digital wallet. So far users of one mobile wallet could not transfer money to another meaning the service was exclusive within one’s own network.
Interoperability to apply to digital wallets, mobile banking, and QRs
NRB says the Interoperability will apply to digital transaction company’s equipment and services such as mobile banking, digital wallets, and the QRs. Likewise, the Institutions and equipment that are part of small-scale Retail Payment System will also have to implement Interoperability.
To implement Interoperability, the licensed service providers will sign an agreement between them.
The federal bank says Transaction System Operators, and Transaction Service Providers must protect user data they obtain through Interoperability.
Check out: Best Digital Wallets in Nepal
Interoperability coming to digital payment apps, and services is another Fin-Tech milestone Nepal needed. It widens the scope of the service and brings more feasibility to payment on the go. How do you feel about this decision by NRB? Share with us in the comments below.