Electronic payment transactions becoming popular, QR tops the list

By Laxman Kafle,Kathmandu, Nov. 22: Electronic payment transactions have been increasing over the years with the development of payment infrastructure, policy of encouraging electronic payments and gradual adoption of electronic payment instruments.   

According to the latest macroeconomic and financial report based on three months of the current fiscal year released by the central bank, the use of ATM, Connect IPS, mobile banking, wallet, prepaid card and QR code has been increasing for financial transactions. 

The use of payments based on Quick Response (QR) codes has increased at a high rate in the current fiscal year as compared to last year, said Narayan Prasad Pokhrel, information officer of Nepal Rastra Bank (NRB). 

Around Rs. 17.337 billion worth of transactions were made using it in the month of Ashoj (third month of the current fiscal year) while Rs. 6.097 billion worth transactions were made using QR code during the same period last fiscal year. 

Transactions worth about Rs. 14.81 billion were made using QR code in the first month (Shrawan) and Rs. 15.02 billion transactions in the second month (Bhadra) of the current fiscal year. 

Similarly, in the month of Ashoj of the current fiscal year, there was a transaction of Rs. 436 million from prepaid cards. During the same period of the previous year, transactions of Rs. 153 million were made through the use of such cards. 

According to the NRB, the use of mobile banking in transactions has increased compared to last fiscal year. In the month of Ashoj of last year, transactions worth Rs. 87.732 billion were made by means of mobile banking, and it has reached Rs. 162.13 billion in the same period of the current year.

 Transactions worth Rs. 152.561 billion were made using mobile banking in the month of Shrawan and Rs. 146.14 billion in the month of Bhadra of the current fiscal year.

 Similarly, during the review period, the business through the use of Connect IPS has increased significantly. In the third month of the current fiscal year, transactions worth Rs. 307.27 billion were made using Connect IPS while it was Rs. 239.14 billion in the same month of the last fiscal year.

 The transactions worth Rs. 237.75 billion were made using Connect IPS during the fiscal year 2020/21 and Rs. 51.30 billion during the fiscal year 2019/20.

 According to the NRB, around Rs. 16.56 billion transactions were made through wallets in the third month of the current fiscal year. Using them, during the same period of the last fiscal year, transactions of Rs. 15.187 billion were made. 

Transactions of Rs. 17.46 billion were made through wallets in the month of Shrawan and Rs. 17.63 billion in the month of Bhadra of the current fiscal year.

 According to the NRB, there has been a decrease in the payments made through Internet banking in the third month of the current fiscal year compared to the same period last fiscal year. 

In the third month of last year, transactions worth Rs. 13.344 billion were made using Internet banking, and during the review period of the current year, transactions were worth Rs. 11.959 billion. 

Pokhrel said that the Banking and Financial Institutions (BFIs) should adopt modern technologies and software, and employees should be made accustomed to technology.

He informed that the NRB has made a provision to provide loan in subsidised interest rate for those Internet service providers to extend its services in rural areas targeting to ease Internet services across the country. 

The QR code and interbank fund transfer are becoming popular among users as the number of QR code users are increasing lately, he said. 

“Users should be careful and vigilant in digital transactions and electronics and not share confidential details related to transactions with unnecessary and unknown persons,” he said.