Nepal Telecom to start Utility Payment Services with mobile money technology in association with Rastriya Banijya Bank. Nepal Telecom have started the process by registering a new sub company. For this, they have selected the consultant to initiate the process.
With major share of Nepal Telecom, in association with Rastriya Banijya Bank, they have started to launch the mobile money system. According to NT spokesperson Dilliram Adhikari, this company will be registered as public company and the share will of Rs 1 arab.
Nepal Telecom have started its paper work. After this, NT will reach Nepal Rastra Bank with Letter of Intent for the mobile money and utility payment service license. If Nepal Rastra Bank receives license, then, they will start the technical work.
Both the company have huge number of users. Currently, NT have more than 1 crore users while Rastriya Banijya Bank also have massive customers. So to reach to the users, both company will not find difficulty.
NT spokesperson told,”the service will be started within 2076 BS if there won’t be any issues”. But due to governmental procedure and weak execution of NT, the services may be delayed for at least 3 months.
After this services, both company have assumed that their profit will be rise.
What is Mobile Money?
Mobile Money is the payment services done through mobile device. It is same like mobile wallet. Mobile money is also known as mobile payment, mobile money transfer,etc.
Mobile money in broader sense denotes the mobile banking but is not actually a mobile banking. In mobile banking, mobile device is used to transfer and withdraw money, utilities payment,etc.
What is difference between mobile banking and mobile money?
In mobile banking, the mobile device is used to do all the transactions like fund transfer, withdraw, utilities payment and many more but under the bank supervision. For this, bank account must be created. In Nepal also, using mobile banking have the same procedure. Example: Nepal bank mobile banking, global ime mobile banking,etc.
But in mobile money, under supervision of Nepal Rastra Bank, the mobile device can be used to transfer, withdraw and pay utilities without using the bank application. So here, separate mobile application from the company is provided. To register for mobile money and do transactions, users need to to complete the Know Your Customer(KYC) form. This includes the personal information with citizenship or license or voters card information. Then only, the transactions can be done. Example: Esewa, Khalti, Prabhu Pay, etc.
Now its time to see how much the new mobile payment Nepal Telecom will capture market share.