September 14, 2021 | Investopaper
Nepal Telecom has launched ‘Namaste-Pay’ mobile wallet on Tuesday. Digital Payment Company Limited, a company jointly established by Nepal Telecom and Rastriya Banijya Bank, has developed a mobile money service that allows to purchase goods and services from the mobile balance. The company will work as a payment service provider in mobile money technology, including ‘Utility Payment Services’
Nepal Telecom has a large network. There are more than one crore customers. Due to this, the technology is expected to play a major role in providing digital banking services and online payment services. One can avail facilities such as paying water bills, electricity bills, telephone bills, ticketing, transferring money etc.
Nepal Telecommunication Authority (NTA) had given permission to Telecom to start mobile money service on Magh 14. Ncell received the permission from NTA to start a similar service on Magh 25.
Nepal’s Telecom Mobile Money
Even though there are more than half a dozen current digital payment service providers, the mobile money service brought by the telecom will be a little different. The user does not even need a bank account to use the mobile money service. The customer receives the balance on their mobile through Recharge card or any other means. The mobile user can use the same balance to communicate on mobile, use data and even pay for purchases of goods and services.
Nepal Telecommunications Authority and NRB have also signed a memorandum of understanding to regulate services such as Telecom’s mobile money. At present, you can only buy various data packages provided by your service provider from your mobile balance. With the launch of this service, mobile number will be just like a bank account. Mobile users can pay for various services, including electricity tariffs, from purchasing goods from their balances.
The main balance and the balance payable will be kept differently as the mobile balance will be taxed like telecommunication service fee, VAT, mobile ownership fee.