Digital Dashain : Practicing FinTech in family.

Dashain, festival of victory and in another hand a charm of Durga Puja, holidays in Nepal, Ravana Dahan in India and this is celebrated as Navaratri of nine days and the last tenth one is Bijaya Dashami where family, relatives, friends celebrate together, share happiness, joys and elder give blessings to younger.

People bless with words, gifts and majorly money is given with blessings. A new bill of 100 has more value than the old bill of 100 for everyone. It is also said and experienced that the note should make sound of being strong, like new and the happiest moment is getting unexpected amount of new currencies which sometime seems like a jackpot.

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Whenever someone uses phone to transfer money online, pay utility bills, pay for food, buy tickets online means a process of FinTech (Financial Technology) which is part of billion-dollar industry. Trusted by millions of users worldwide. The simple process to overcome from big obstacle of carrying money, loosing it, theft it. Product, technology and business model is converting to cashless empire. CNBC 2017 reports Global investment in the FinTech sector has added up to nearly $100 billion since 2010. Tech giants are already in FinTech sectors like Digital wallet platform from Google Pay, Apple Pay, Alipay, Paytm etc.

As media said Nepal Rastra Bank (Central Bank of Nepal), a body off all financial institutions of Nepal is pouring more than Nrs 1 billion yearly and the frequency was Nrs 790 million last year. The things repeat when the bills do not long last due to improper placement, writing, making dirt which are the pain points for NRB even after ban of stitching. The scenario of digital payment is gradually increasing by the great effort of few major payment gateways like Khalti, eSewa, IME Pay etc. who have been trying to implement new system of digital payment.

 

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Practicing FinTech:Government should promote Digital Payment system & Dashain is the very right time to implement it. Rather than wasting lots of millions on printing new bills, it will be great initiation and new practice to move people towards Digital Payment System like eSewa, Khalti, IME Pay or any Digital Payment Gateway alternatively. Practicing new things may take time but the proper vision must be made for future too. It’s been decades that the major restaurants, hotel, shopping center have been accepting card payment i.e. Point of Sales (POS) in their premises. Now its quite easy to carry cash in digital format. Years have been crossed where we had to carry cash. The time is cashless, hassle less and fast. Credit card is offering buy now and pay later, schemes for EMI, certain percentage of cash back, special offers and more methodologies of growth hacking which directly increases the sales of any brand/product. Most of the all banks now has mobile based apps both for Android and iOS which eases fund transfer, statement details, pay utility bills and more facilities are added time by time. Nepal Clearing House Ltd. which has started connectIPS has 80 banks includes commercial banks, development banks and finance companies till now in its network. The process is easy which helps fund transfers or biller payments through single payment platform.

Payment Stories :Online shopping website Daraz accepts credit card payment online where Bhatbhateni counter has many options of card swiping system. From a small bar to a big mall, everyone is accepting card payment system. Founded in December 1998 PayPal serves worldwide, it is most used online payment system with 286 million users which secures card payment system and major online system accepts payment of PayPal. It supports 25 currencies worldwide and more than 200 countries/ regions are using it. Reaching on the top, PayPal took many years, likewise eSewa, Khalti, IME Pay has been penetrating Nepalese finch market.

 

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Playstore Status : 

eSewa last update was on October 5, 2019 with installation size 14MB, 1,000,000+ installations, requires 4.1 and up Android Version with current version 3.6.1. 4.3 rating with 14,551 reviews.

Khalti last update was on October 4, 2019 with installation size of 17MB, 500,000+ installations, requires 4.1 and up Android Version with current version 2.30.01. 4.2 rating with 5,610 reviews.

IME Pay has two apps in Android play store, one is IME Pay and another is IME Pay agent. Last update was on 21 August 2019 with installation size of 21 MB, 500,000+ installation, requires 4.1 and up Android Version with current version 2.2.9. 4.2 rating with 2,577  reviews.

The android app download system has it’s own numbering algorithm which increases from hundred thousand, five hundred thousand to directly 1 million so the number is not shown exactly.

The stats of installation is not exactly shown by Google Play Store but roughly estimate shows that 1.6 million installations are made on Android phone where any user can have all three application installed or few thousand can be rarely used and many more are regular transferring money for their families, withdrawing in their bank account, a Nepal Electricity Authority consumer is paying electric bill without standing in queue, a man booking flight ticket from his phone, travel agents using online payment system to book international flights, water bills are being paid in few clicks. A person paying for taxi fare and someone who recently lost his wallet can still have a small vault in cloud which can be accessed from any corner of the world.

The FinTech practice has been implemented in many different ways since a short time. It can be said that major 3 have brought revolution in Nepal on FinTech. In one hand NRB is promoting FinTech and other hand it has been investing billions of rupees for printing new notes. Practicing digital payment (digital dakshina) can be very fruitful option even for government inspire of burning billions to replace bills yearly and more the way when a child is blessed her practice can help her parents to implement future of FinTech in present time.

 

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The perfect timing of Dashain can be the best time to follow or start something new which helps to grow the users, make new practice, moving towards technology friendlier way of keeping money in cloud. Same can be used for more festivals which will automatically add one more user in every transaction. When a brother gifts his sister he can teach her to use the system, the latest technology. The practice can help her to avoid standing in queue for paying electricity bill, water bill or the process can be in few clicks to buy airline tickets or fund transfer later. The practice started in Dashain can be very useful for all the hassles of payments, the power of FinTech in smartphone, the way of simplifying transaction, saving precious time, maintaining all records of expenses.

From the early sunshine to dark dawn, a man can pay for breakfast in any restaurant, pay for fuel, buy food, transfer to his son, buy a movie ticket. The whole process can be digitalizing to cloud currency i.e. cashless payment system, where digits transfers in binary which is equivalent to cash in hand. It can also help to monitor cash flows, income, expenses in categories, a complete financial statistic graphically.

Festivals like Dashain with families, tihar with dheusi/bhaili & bhai tika, mothers day, fathers day, birthday gifts, balance transfer in phone, gifts, flight tickets, utilities bill payment, online shopping, ordering food online, pizza delivery, payment for service like plumbing, carpentering, gas delivery and hiring a photographer can be easily paid by Khalti, eSewa, IME Pay etc.

Lack of operation knowledge, security and old mindsets, the industry needs to struggle upscaling mindsets to show the future technology. The best option can be sharing information, tutorial videos, toll free 24×7 multilanguage call centers, demo account & more some good rules and regulations by NRB to implement it. May it be trouble in early stage but a person can check his expenses, payments, remain, income and almost every data which he even needs after 20 years. The desired information safely stored in cloud.

 

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The biggest challenge and hurdles are long lines in bank to deposit, withdraw, opening bank accounts, verification and more difficult ways of keeping money in hand. The system FinTech has made easier to do everything in few clicks after verification. Mobile Application for almost everything, saved fund transfer list, easy to use system, friendlier way to use. Platform lending is used by small business lenders which sometimes called as marketplace lending or peer to peer lending. These are creating direct social impact rather than the traditional way. Opening a bank account over the internet which was started by Nabil Bank in Nepal. Linking smartphone with existing bank account or using right away of phone. The smartphone can be used as digital wallet.

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