“Digital Wallet in Nepal”

Submitted by: Swikriti Thapa

Symbol Number:4917/19

A Case Study Submitted to

Faculty of Management, Tribhuvan University
in partial fulfillment of the requirements for the degree of
Bachelor of Business Management

At the
Nicholson College
Tribhuvan University
 Table of Content

Chapter I Page
 Abstract
 Acknowledgement
 Introduction 1
 Purpose of study 2
 Objective 3
Chapter II
 History in world 4
 History in Nepal 5
 Nepal’s payment in modern days 6
 Data of digital wallet 7

Chapter III
 Types of digital wallet 8
 Uses/ Benefit 10
 Issues/ Challenges 11
Chapter IV
 Discussion and Conclusion 12
 Reference
 List of Diagram
Fig:1.1 Data of Digital Wallet 7
 Chapter I
Abstract

The digital wallet, a versatile tool in the realm of financial technology, enables effortless electronic
transactions by exchanging digital currency units for goods and services. Operating as an
electronic device, online service, or software program, it facilitates seamless exchanges between
parties, obviating the necessity for physical cash or cards. With its convenience and security, the
digital wallet catalyzes the evolution of digital economies, enhancing accessibility and efficiency
in financial transactions which can be made online through a computer or a smartphone. Its utility
is same as a credit or debit card. Virtual cash or Cashless Transaction is an upcoming technology
that has seen a tremendous growth in the past year. Cashless payments are now becoming a popular
trend in almost every field. Demonetization has forced a lot of places to accept digital payments.
Use of e-wallets helps in moving away from cash based economy. The presence of digital wallet
spreading from urban to rural areas on a large scale.
 Acknowledgement
I am extremely grateful to our honorable Mr. Charles Shahi Thakuri for being a source of
inspiration and his constant support in the Design, Implementation and Evaluation of the case
study. I am also thankful to him for his constant constructive criticism and invaluable suggestion,
which benefited me a lot while developing the case study “Digital Wallet”. He is very co-operative
throughout this project work. Through this, it would be my utmost pleasure to express my warm
thanks to him for his encouragement, co-operation and consent without which I wouldn’t be able
to accomplish this case.
 Introduction
A digital wallet, also known as an e-wallet or mobile wallet, is a digital application or software
that allows users to securely store and manage various forms of electronic payment methods, such
as credit cards, debit cards, bank account information, and even cryptocurrency. Digital wallets
aim to simplify and streamline the process of making electronic transactions, both online and
offline, by providing a convenient and secure means of managing financial information.
Here's a brief introduction to the key features and functions of digital wallets:
 Storage of payment Information
 Convenience and accessibility
 Secure transaction
 Cross-Border Transaction
 Cryptocurrency support

1
 PURPOSE OF THE STUDY

 Convenience to the user

 Security of financial information
 Efficiency on financial transaction
 Financial inclusion with limited access to traditional banking services.

2
 Objectives

 To identify the purpose of using digital wallet

 To find out the services provided by digital wallet
 To know the benefit of digital wallet in daily commercial activities
 To analysis the satisfaction level and to know the preference of users whether they will
continue to use the service in the future.

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 Chapter II
History in world
Digital wallets have grown in popularity since they were first introduced over 20 years
ago. Digital wallets allow users to quickly and easily make purchases in-stores and online,
withdraw cash from ATMs, and send money peer-to-peer giving the user greater flexibility and
convenience in payment choice. Since 2019, there has been an explosion in use, and the
coronavirus pandemic is pushing more people towards cashless options.

The origin of digital wallets

The origins of digital wallets began over 25 years ago with then 21-year-old entrepreneur Dan
Kohn in Nashua, New Hampshire, who sold a CD over the internet via credit card payment.
 1994: First online purchase is made. A CD of Sting’s Ten Summoner’s Talesis sold for
$12.48 on NetMarket.
 1997: First mobile payments and first contactless payments is made. Coca-Cola installs
two vending machines in Helsinki that accept payment by text message.
 1999: PayPal launches electronic money transfer service. Early on, PayPal’s user base
grew nearly 10% daily. TeslaCEO Elon Musk and venture capitalist Peter Thiel were
among its co-founders.
 2003: Alibaba launches Alipay in China. Today, the mobile payment platform has
witnessed stunning growth — leveraging digital wallets accepted by merchants in over 50
countries and regions.
 2007: M-PESA creates the first payments system for mobile phones. Kenya-based M-
PESA launched its mobile banking and microfinancing service. Today, it has over 37
million active users on its platform across Africa.
 2009: Bitcoin enables secure, untraceable payments. Satoshi Nakamoto develops the first
decentralized payment network in the world.
 2013: WeChat Pay is rolled into the popular messaging platform. By 2018, it surpasses 800
million monthly active users.
 2014: Apple Pay launches. By 2023, over $2 trillion of mobile payment transactions could
be authenticated by biometric technology.

Google became the first major company to launch a mobile wallet in 2011. 2012 saw Apple’s
Passbook, while not for mobile payment, could be used for boarding passes, tickets and coupons.
Apple pay came two years later. Launched in the US, it quickly spread to UK and China. 2015
brought Android and Samsung Pay. Ever since, digital wallet like Grab-pay, Lazada wallet, Pay-
pal, Touch ‘n Go, V-Cash and many more, have made this mode of payment quite popular.

By 2025, digital wallet is expected to become the second most preferred payment method.

4
 History in Nepal

Nepalese payment system came in 1990, when digital payments were implemented in the
region. Nabil Bank, with the issuance of credit card in 1990, first introduced card banking
into the economy. This was followed by Kumari Bank and Laxmi Bank SMS Banking in
2004 in other forms of digital banking, such as internet banking in 2002. In 1995
Himalayan Bank launched the country’s first ATM. In 2016, the Smart Choice
Technology(SCT) was developed with an effort to integrate card banking among banks
and financial institutions through the SCT network.

Until the advent of esewa in 2009, the payment system was under full control of banks and
financial institutions. The customers were able to pay, send and receive money from their
cell phone and internet in 2009 after their service as a digital wallet without having any
bank account.

5
 Nepal’s payment in modern days
As the internet develops, lots of possibilities emerge in this modern age. The internet has changed
people’s way of thinking and living. We do not need to move miles to conduct any financial
activities. By siting in the one corner of house we can perform some marketing online and also
online payment system can do.

Online payment system is one of the best systems on the Internet for carrying out a financial
transaction. People have shown their financial transactions on it because of its simplicity and
versatility in making payments. Even now we are able to make every national and international
payment through the internet. It is one of our biggest achievements. In Nepal there are also many
online companies that help send and receive money online, purchase air tickets, pay utility bills,
buy mobile recharge cards, pay college bills, internet bills, subscribe online newspapers and
magazines.

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 Data of digital wallet:

Source: https://www.deltadigit.com/best-digital-wallets-nepal/
Fig: 1.1 Data of Digital wallet

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 Chapter III
Types of Digital wallet
1. ESewa-Mobile Wallet

Esewa Is Nepal’s first payment gateway to have an integrated digital wallet. Esewa Fonepay
Pvt.Ltd. is the first and leading payment service provider, staring to provide services since2009
AD. Esewa is a subsidiary of F1Soft International, a leading technology company in Nepal. It has
wider coverage to all 77 districts of Nepal. It has growing network more than 150k merchants, 50+
banks and financial Institutions and established a wider network of agents nationwide.

2. Khalti Digital Wallet

Khalti is a revolutionary way of paying in Nepal. It offers the safest and fastest online payment
experience for a variety of Bill payments, mobile reloads, DTH payments, and so on. This is an
easy way to send money or accept payment immediately. It is also enables money transfer and
payment through multiple bank accounts and agent networks.

3. Paywell Nepal
PayWell Nepal is managed and retained by First Investor Management Company Pvt. Ltd.
PayWell is a user-friendly wallet and payment service, operating through mobile hands and
computers using internet services. PayWell users can make bill payments, transfer money, and
operate wallets online and offline using their mobile phones. PayWell is a mobile payment app
that stores your payment information on your smartphone.

4. Moru-Digital Wallet
Moru is a leading digital wallet advertised by Pay Nep private Limited. Moru is a digital wallet
that follows you wherever you are. It guarantees real-time, secure and instant payments to different
traders. With Moru, you can make various payments such as utility bill payments (NEA,
Khanepani, etc.), mobile phone top-up, internet bill payments, airlines and bus tickets, buy movie
tickets, bank transfers (MoRu to the bank), scan and pay merchants, and more. Just log in with
your username and password and choose which one you want to use.

5. IME-Pay
IME Pay is an advanced digital wallet that allows users to transfer money from wallet to wallet,
pay utility bills and make purchases online or offline instantly with a few quick steps on their
smartphones. Basically, it brings all cash transactions at IME’s fingertips, from basic household
purchases to high volume purchase.

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 6. ICash Nepal
ICash is an online wallet, payment gateway and service provider in Nepal. iCash is an emerging
online payent solution in Nepal, it allows users to pay for a wide range of services such as basic
utility payments, hotel bookings, airfares and more.
7. QPay Nepal
Qpay simplifies the payment system by using mobile phone as a wallet. With this app,
consumers can easily make payments for purchased goods and services provided. Paying bills
and transferring money becomes simple and systemic with the use of this App. Likewise, users
can easily link their bank account, which will help them deposit QPay wallet funds into their
respective bank accounts.

8. E-Net Payment
E-Net Pay is a fast, secure, and esay process for paying or receiving payments onlines. Online
payments allow users to process all kinds of online payments such as phone or mobile top-up,
recharge cards, internet bills, tuition, air tickets, bus tickets, etc. Currently, E-Net Pay has
registered suppliers such as NCELL, Nepal Telecom, UTL, Smart Cell, Dish Home Media,
Buddha Airlines, Yeti Airlines, Simrik Airlines, Saurya Airlines, Subisu Cablenet, Broadlink,
ViaNet, GME Remit, POSCASH ATM and Bussewa.com. E-Net Pay is working to add more
providers such as Film Operators, Schools and Colleges, Internet Service Providers, both
domestic and international airlines, Bus Operators, SCT Networks, etc.

9. Prabhu-Pay
PrabhuPay is a mobile wallet with a monile-nased payment solition under Prabhu Techonlogy
Pvt.Ltd. The PrabhuPAY app allows users to simplify the checkout process. With this app,
consumers can easily make payments for purchased goods and services provided. Quick deposits
and easy payment of various utility bills make this App more user-friendly, and above all,
consumers can also transfer small-value funds to consumers in the PrabhuPAY network.

10.CG-Pay Wallet
CG Pay is a provider of services, payment gateways and mobile wallets in Nepal. Launched in
January 2020, CG Pay is an emerging online payment solution in Nepal. It allows users to pay
for a wide range of services such as basic utility payments, hotel bookings, movies and domestic
airfares, events and more. It is operated and owned by Nepal Payment Solution Pvt. Ltd.CG
Pay provides payment solutions to hundreds of sellers across Nepal and provides seamless
payments using e-banking, smart banking, cards and wallets. Not only limited to mobile app
users, but CG Pay also has more than 8000 POS and Agent Network offers CG Pay service to
end-users.

9
 Uses/ Benefits of digital wallet

 Digital wallets provide a convenient and hassle-free way to make payments for goods and
services so users can make transaction anytime, anywhere, as long as they have a
smartphone and internet connectivity.
 Digital wallets help reduce the reliance on physical cash for everyday transactions, leading
to a safer and more efficient financial ecosystem.
 Sending and receiving money becomes quick and easy with digital wallets. Users can
transfer funds to friends, family, or businesses with just a few taps on their smartphones.
 Digital wallets often use encryption and authentication measures to secure transactions,
providing a level of security that cash transactions may lack.
 Many digital wallet providers offer promotions, discounts, and cashback incentives to
encourage users to make transactions through their platforms.
 Digital wallets provide users with a digital record of their transactions, making it easier to
track spending and manage finances.
 Digital wallets often support QR code payments, allowing users to make transactions by
scanning QR codes, which is convenient for both customers and merchants.
 some digital wallets enable users to make international transactions, facilitating cross-
border payments and remittances.

10
 Issue/ Challenges

 Many merchants, especially in rural areas, may not accept digital payments. This
limits the utility of digital wallets for everyday transactions.
 Limited internet access in some regions of Nepal can hinder the widespread
adoption of digital wallets. Transactions often require a stable internet connection,
which might be a challenge in remote areas.
 Issues such as unauthorized access, data breaches, and fraud can erode trust in
digital payment systems.
 Limited interoperability between different digital wallet platforms can be a barrier
to seamless transactions. Users might face difficulties transferring funds between
different wallet providers.
 Lack of awareness and understanding among the general population about the
benefits and usage of digital wallets can impede their adoption.
 In some areas, the lack of proper infrastructure, including point-of-sale (POS)
systems and NFC-enabled devices, may hinder the adoption of digital wallets.

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 Chapter IV

Conclusion

In Nepal, digital wallets have the potential to improve the overall efficiency and
accessibility of financial services, especially in regions where traditional banking
infrastructure is limited. However, it's important to note that the success and adoption of
digital wallets depend on factors such as user awareness, infrastructure development, and
regulatory support

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 References
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A%20MOHAN.pdf
 https://blog.717cu.com/resources/education/financial-education-blog/the-history-
of-digital-
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%20and%20China.
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nepal/#:~:text=Until%20the%20advent%20of%20eSewa,without%20having%20a
ny%20bank%20account.
Assessed on 2nd December
 https://www.deltadigit.com/best-digital-wallets-nepal/
Assessed on 6th December
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Assessed on 27th December