The Online Payment System in Nepal: Advantages and Challenges
There has been a sudden rise in the use of mobile banking and digital transactions. This has been happening in recent years and it has been a major factor in the growth of the banking sector in Nepal. It is important to take into consideration some of the major benefits and challenges when using digital transactions and mobile banking. This blog sheds light on where the opportunities or advantages are for the digital platform in Nepal and what its challenges of it look like.
It is almost 100 years since the establishment of the first bank in Nepal. During this period, many banks have been established in Nepal. But banks have only just begun to go digital. They have just entered the Connect IPS system through internet baking, mobile banking, QR system.
What is an online payment system?
The online payment system is the process of facilitating a transaction by transferring money or credit for goods or services from one party to another. It can be done through a web application or through a smart device connected to the internet. Managing money has never been easier. With just a few clicks, you can make transactions. Various types of online payment systems are available in Nepal now. Some of them have fewer facilities and some have more facilities. You can download these apps by going to Google Play Store and iOS apple store. And you can run these apps by filling out the required form. Or you can sign up and log in directly to their website. Below is a list of some of the most popular online payment systems in Nepal.
What is Connect IPS?
Connect IPS is an easy service for bank account holders to transfer money from one account to another and make some bill payments. This service is much better than mobile banking. It includes C2G, C2B, P2P services. Nepal Clearing House has provided this service.
How to open an IPS account?
To use this service, you need to go to the Connect IPS server. The printed copy received after registration there will have to be submitted to the bank where your account is located. And the bank will provide this service to you.
Advantages of online payment system
Some time ago, the situation was such that one had to wait in line for hours at the bank to withdraw one’s money. But now that situation has become much less. The credit for this goes to the online payment system. Today, people can easily do this at home and in the office. The online system has been provided for sending money, electricity, water, school, and college fees. etc. Time is saved and the long line is almost gone. It has also increased the accuracy of the transactions.
There are many advantages of online payment but there are also some challenges. Online fraud, theft, hacking, etc. are the disadvantages of this system. Online security in Nepal is not very good. It seems that the security system needs to be kept tight to prevent accidents.
Online payment systems are on the rise in Nepal. The hassle of hiring more staff is being reduced and the cost of printing paper notes is being reduced. So making it accessible to all in a timely manner and increasing online security seems to benefit everyone.