Digitalization in Nepal
Sixty-two years after the erstwhile Soviet Union launched Sputnik-1, the world’s first satellite, Nepal sent its first satellite ‘NepaliSat-1’ into space in April 18 to at around 2:31 am. A landlocked country, bordering Tibet of China to the north, and India in the south, east, and west, my country is counted as one of the developing countries of the world . While I was studying in college, I used to watch science fiction movie such as advanced science and technology, space exploration, time travel, and then think how fast the technologies had grown. I used to think ‘Can my country within the Himalayas be so advanced in technologies and digitalization?’. But today I see that we are slowly coming across the dream of digitalization. I realize today that ‘ Rome was not built in a day’ and then we must all contribute to bring the change we wish to see. 2020 brought along a new outlook to this country and a different understanding towards a great deal of things; Digitalization being one of them.
The pandemic changed the people’s perspective towards digital payment in Nepal. Although digital payment services had slowly been proceeding towards tentative growth with the innovation in technology, the industry was yet to reach higher ground compared to other countries . We are now quickly adapting and undertaking the usage of digital payment services for our daily expenses and micro payments. Digital payment methods took speed as a way for people as the lockdown was implemented when the Covid-19 virus first hit Nepal; by now people have become more familiar, discovering saved time, lower costs and better client experience. But there’s more trust to be build around these online services as we listen some fraudulent activities. Digitalization also reduced the virus transmissibility through cross contamination.
There is a growing level of easiness among local businesses in receiving customer payments contactless and digitally from various payment getaways. Nepalese merchants have now come to the realization that, use of wallet payment services not only reduces the overall transaction cost but also offers customers better security for their payments made, while customers furthermore come to trust their business . Digitalization also allows businesses to gain useful information about their customers and take a customer-centric approach to improve their services. Now, companies are actively participating and supporting digital payment service providers in educating the public on digitized payments, which is another big reason for the swift growth in the industry. Simultaneously, several goverment bodies and banking institutions of Nepal are engaging in promotional activities to encourage cash alternatives like Digital Wallets, QR Code Payments, E-banking and M-banking services.
Digital wallet and online payment services play a vital role in this 21st century, as users can, within a few taps on their smartphone, transfer money without the limitations of geographical barriers. Digital wallets grant you the convenience of not having to take your wallet out, nor do you have to count your change, swipe cards or fill out any details before making a transaction. A few taps on your phone and you’re done. Also now the NRB has directed that we can make some international payments putting some restrictions and that start has boosted youths and helped them in making international payments.
As the Digital Nepal program estimates to deliver an impact worth 800 million Nepalese rupees ($7.23 million) by 2022, already its IT-enabled services and business process outsourcing sector has been liberalized to allow 100 percent foreign direct investments, while the telecommunication sector allows 80 percent FDI. But Nepal’s ICT infrastructure still remains a work-in-progress. Under the sub-pillar of Infrastructure such as mobile network coverage and bandwidth performance, the WEF’s Network Readiness Index reflected a declining trend for Nepal over the last five years. As Nepal continues to leverage cooperation with multiple countries and not solely relying on India to strengthen its technological capacities, its policymakers and business communities must start capitalizing on Nepal’s growing ICT facilities — forming linkages between its satellite, optic cables, and upcoming 5G networks can bring Nepal one step further to integrate with the global digital economy.
Wrap Up:
Although, 2020 was a difficult year for all of us in every aspect and with the next wave of covid-19 , 2021 is also not going as expected. but we must adapt everyday to a new way of life, because it is during the darkest moment that we must focus to see the light and the light is digitalization and digital payment in Nepal which might just bring a revolution in our country.