Nepal Clearing House Limited is developing a new digital payment system to allow inter-wallet transactions in the first phase of the National Payment Switch. This enables the transfer of balance money from one wallet to another for instance transfer funds from eSewa to Khalti or vice versa. Find the details of the Internet wallet money transfer that is coming with the National payment switch.
National Payment Switch is one ambitious project assigned to NHCL by Nepal Rastra Bank that will help for safe and cost-effective electronic transactions. The talks of a national payment switch began one year ago but the proceedings were slow due to groundwork. However, NCHL is now in its final days of materializing the project.
What is National Payment Switch and Why Is It Needed?
We do perform transactions online. We are using E-Sewa, Khalti, Connect IPS, etc to make payments. Additionally, we also have Master Card or Visa card up our sleeve for electronic payment. However, they do have limitations. We cannot pay directly between two different e-wallets. Utilizing Visa and Master Cards comes at a cost and they are not friendly.
B/FIs pay a hefty charge for relying on Visa and Master cards which also trickles down in the general public. They are an international payment gateway and in the absence of Nepal’s own equivalent, a huge amount of revenues also escape from Nepal. However, having our own payment gateway or National Payment Switch will enable Nepalese to make digital transactions without depending on Visa and Master Cards and will also save cash in the service charges.
The National Payment switch, however, will integrate all the B/FIs involved in the electronic transaction. According to NCHL Chairman Naresh Shakya, digital payment vendors such as IPS, ConnectIPS, QR Code, debit and credit cards and others will be brought together into an eco-system to facilitate a faster and more convenient transaction system.
Check out: National Payment Gateway in Nepal
First Phase Priority
Currently, customers if digital wallets cannot perform inter-wallet transactions between them. For eg. E-Sewa and Khalti. However, NCHL has made it a priority to render this a possibility in the first phase operations of “Switch”. After the service comes into effect, E-Sewa, Khalti, or other electronic wallet users could make transactions between them directly.
NCHL has been closely studying the proscpects, rules and regulations after Nepal Rastra Bank allowed it to launch a national payment gateway. The said plan took a delay due to COVID-19 lockdown and other obstructions. However, It is gearing up to complete the project and reinforce digital transactions service in Nepal.
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“In its first phase, NCHL will incorporate non-card payment gateways such as QR Code, Wallets, Connect IPS into one eco-system and facilitate for digital transactions directly between them.” Nepal Rastra Bank Director Bhuwan Kandel said.
Currently, NRB is paying 12 per transaction to international payment switch. However, with the launch of the National Payment Switch, reliance on foreign payment vendors will subside to a large extent.
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The ‘Switch’ will integrate all digital payment providers into one system to deliver an inter-wallet transaction facility. Moreover, it will also help the government in collecting revenues and other payments. More importantly, it will minimize our dependency on international payment gateways such as Master Card and Visa Card.
The ‘Switch’ is another milestone from the Nepal government in its steps towards digital payment. One by one, our transactions are going digital thanks to Nepal Government’s plans and policies. How excited are you with this news? Leave us your opinion in our comments section below.