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Introduction

Mobile wallets and digital payment systems are becoming increasingly popular in Nepal. This is due to the increasing availability of smartphones and other mobile devices, the growing demand for convenient and secure payment methods, and the government's support for the use of digital payments.

Remittance is the money that migrants send to their families back home. Nepal is a remittance-dependent country, with remittances accounting for around 30% of the country's GDP. The use of mobile wallets and digital payment systems for remittance transactions is growing rapidly. This is because these platforms offer a number of advantages over traditional remittance methods, such as convenience, speed, and lower fees.

Benefits of Mobile Wallets and Digital Payment Systems for Remittance

There are a number of benefits of using mobile wallets and digital payment systems for remittance transactions. These include:

• Convenience: Mobile wallets and digital payment systems make it easy for people to send and receive money from anywhere with an internet connection and a mobile device. This is in contrast to traditional remittance methods, which can often be time-consuming and inconvenient.
• Speed: Mobile wallets and digital payment systems can be used to send money quickly. In most cases, the recipient will receive the money within minutes of the sender sending it. This is faster than traditional remittance methods, which can often take days or even weeks for the recipient to receive the money.
• Security: Mobile wallets and digital payment systems use encryption and other security measures to protect user data. This makes them a more secure way to send money than traditional remittance methods, which are often vulnerable to fraud and theft.
• Cost-effectiveness: Mobile wallets and digital payment systems can offer lower fees than traditional remittance methods. This can save people money when they send money to their loved ones overseas.
• Accessibility: Mobile wallets and digital payment systems can be used by people who do not have access to traditional banking services. This makes them a more accessible way to send money for people who live in rural areas or who do not have a bank account.

The Growth of Mobile Wallets and Digital Payment Systems in Nepal

The use of mobile wallets and digital payment systems for remittance transactions is growing rapidly in Nepal. This is due to a number of factors, including:

• The increasing availability of smartphones and other mobile devices.
• The growing demand for convenient and secure payment methods.
• The government's support for the use of digital payments.

In 2021, the Nepal Rastra Bank (NRB) issued a directive to all commercial banks and financial institutions to facilitate the use of mobile wallets and digital payment systems for remittance transactions. This directive has helped to accelerate the growth of these platforms for remittance.

The Impact of Mobile Wallets and Digital Payment Systems on Remittance

The use of mobile wallets and digital payment systems for remittance transactions is having a positive impact on the economy of Nepal. This is because remittances can help to boost economic growth, reduce poverty, and improve financial inclusion.

Remittances can boost economic growth by providing a source of foreign exchange. This can help to increase the supply of money in the economy, which can lead to higher levels of investment and consumption. Remittances can also help to create jobs, as migrants often invest their remittances in businesses and other ventures back home.

Remittances can reduce poverty by providing a source of income for families that would otherwise be struggling. This can help to improve the living standards of these families and their communities. Remittances can also help to improve financial inclusion, as they provide a way for people who do not have access to traditional banking services to send and receive money.

The Future of Mobile Wallets and Digital Payment Systems in Remittance

The use of mobile wallets and digital payment systems for remittance transactions is likely to continue to grow in the future. This is due to the increasing availability of smartphones and other mobile devices, the growing demand for convenient and secure payment methods, and the government's support for the use of digital payments.

As the use of these platforms for remittance continues to grow, it is likely to have a positive impact on the economy of Nepal. This is because remittances can help to boost economic growth, reduce poverty, and improve financial inclusion.

Here are some examples of mobile wallets and digital payment systems that are used in Nepal for remittance transactions:

City Express Money Transfer is a remittance company that is soon going to launch its own mobile wallet. This will allow users to send money to Nepal even more conveniently and securely.

eSewa is the most popular mobile wallet in Nepal. It allows users to send and receive money, pay bills, and make purchases online and offline.

Khalti is another popular mobile wallet in Nepal. It offers similar features to eSewa, and it also allows users to invest in mutual funds and stocks.

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