NRB (Nepal Rastra Bank) has provided Payment Service Provider (PSP) license to Khalti. With the license, Khalti can carry out digital/mobile wallet services through telecommunication technology and the internet. Along with digital payment services, now Khalti can also provide domestic money transfer facility and mobile financial services in Nepal.
A team of young entrepreneurs launched Khalti on 26 January 2017. Since then it has been focusing to impact the lives of people through its innovative technology and services. After getting a license, the encouragement makes Khalti team will take financial services to the next level. It will work to bring Offline services to Online (O2O) and make the lives of people easier.
Elated after being awarded the PSP license by NRB, Manish Modi, Managing Director of Khalti shared,
“Digital payment is a very recent phenomenon in Nepal. Still today, people have to walk for days to reach district headquarters to perform tasks as simple as paying electricity bills. We are excited to get the license from NRB. It has encouraged us to expand digital payments more aggressively across the country. We aim to expand our services in rural and remote parts of Nepal and add different verticals to our platform. We will work to make online payments possible in every corner of the nation to achieve the vision of Digital Nepal and work to bring access to finance to the underprivileged population of Nepal and simplify their lives.”
Status of digital connectivity and banking penetration in Nepal
As per Nepal Telecommunication Authority’s latest MIS report, the country has over 132% mobile telephony penetration and 59% broadband internet penetration. Likewise, NRB’s latest statistics show that over 6 million people use mobile banking in Nepal, and the number of internet banking users is around 1 million.
However, as per WorldBank’s 2017 Global Findex Database, only 45% of Nepal’s population are banked. So, a digital payments system like Khalti can play a significant role to bring the unbanked population to the digital platform and provide financial services.
What services does Khalti provide?
Khalti provides various utility bill payment services, mobile recharge, DTH recharge, domestic flight booking, movie ticketing, event ticketing, hotel booking, newspaper subscriptions, and payments at online shopping sites among others. Furthermore, Khalti offers users with cashback on almost every transaction.
Currently, more than 8,00,000 people regularly use Khalti for various bill payments services.