FonePay, Nepal’s leading payment system operator (PSO) has signed a Memorandum Of Understanding (MOU) with the LankaPay, Srilanka’s national payment network. Fonepay and LankaPay join forces to create a cross-border interoperable payment system. By creating an interoperable payment system that allows for frictionless transactions between the two nations, the cooperation intends to change the digital payment landscape. So, here in this article, let’s know more in detail below.
The collaboration will bring a revolution in terms of cross-border payments. It simply means that through this partnership, Sri Lankans going to Nepal and vice versa would be able to instantly pay using approved mobile applications. It will be possible by the use of QR codes, Fonepay’s network will allow travelers from Sri Lanka to transact with businesses in Nepal without any hassle, and vice versa for people of Nepal who are traveling to Sri Lanka. For users of both networks, the collaboration guarantees convenient and economical cross-border payment options.
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FonePay
It is a subsidiary of the F1Soft Group, and is a Payment System Operator (PSO) in Nepal that enables seamless inter-bank person-to-person (P2P) and person-to-merchant (P2M) transactions through its interoperable network and mobile platforms. FonePay was launched in October 2019 licensed by Nepal Rastra Bank as a PSO and is the country’s first non-card-based PSO to achieve PCI SDD certification. The PSO has played a significant role in shaping digital payment habits and the overall digital economy of Nepal, serving over 18 million customers, collaborating with more than 60 banks and financial institutions, and establishing a network of over 1.1 million merchants. Processing transactions worth over Rs 5 billion daily, Fonepay has become a vital player in facilitating digital payments and promoting financial inclusion in Nepal.
LankaPay
LankaPay is a well-known digital payment network in Sri Lanka that serves as the country’s national payment network to enable safe and effective transactions between different financial institutions and payment service providers. LankaClear (Pvt) Ltd., a joint venture between the Central Bank of Sri Lanka and commercial banks, owns and operates LankaPay, which was founded in 2002. In addition to real-time interbank funds transfers, check clearing, online and mobile banking services, electronic bill payments, direct debit and credit services, and ATM services, the network also provides a wide range of other payment-related services. By putting an emphasis on interoperability, LankaPay facilitates smooth financial transfers and payments across various platforms, promoting a practical and interconnected payment ecosystem for users.
Signing of the MoU
The agreement was formally sealed by Mr. Channa de Silva, CEO of LankaPay, and Mr. Diwas Kumar Sapkota, Chief Executive Officer of Fonepay, during a signing ceremony. Among the dignitaries in attendance were Mr. Daniel D. Shrestha, Director of Group Strategy at F1Soft Group, and Mr. Biswas Dhakal, Chairperson of Fonepay and President of F1Soft Group. Ms. B. Nilusha Dilmini, Charge d’Affaires, a.i. & Head of the Chancery, Sri Lanka Embassy in Kathmandu.
FonePay CEO’s Statement
Mr. Diwas Kumar Sapkota welcomed the guests and dignitaries with his welcoming speech at the event. The CEO of Fonepay, Mr. Diwas Kumar Sapkota, emphasized the importance of the partnership and said that it shows their dedication to utilizing technology for financial inclusion and a healthy digital economy. In addition to Nepal, one of its closest South Asian neighbors, Sri Lanka, also benefits from the alliance between Fonepay and LankaPay. With the help of this partnership, cross-border digital payments will be quick, safe, and simple, promoting economic progress in both nations. He also pointed out the similarities between the two in their tradition & culture.
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LankaPay CEO’s Statement
The CEO of LankaPay, Mr. Channa de Silva, expressed his enthusiasm for the collaboration while underlining their shared goal of creating an open and inclusive payment ecosystem. Both Fonepay & LankaPay aim to empower people and businesses by bridging the gaps between their respective platforms, opening up a wide range of opportunities for smooth transactions.
Globalize
The Director of Group Strategy at F1Soft Group, Mr. Daniel D. Shrestha, emphasized the company’s desire to grow internationally during the signing of the Memorandum of Understanding (MoU) between F1Soft Group and LankaPay. He noted that the partnership with the leading payment network in Sri Lanka is consistent with their long-term plan to build on the achievements made in Nepal with their partner banks and other ecosystem players. Mr. Shrestha emphasized their goal to utilize both domestically developed technologies and knowledge to further improve Nepal’s digital payment environment while also bringing them to international markets. This dedication reflects their attitude of pursuing worldwide expansion and establishing themselves as leading figures in the payments sector.
Closing Remarks & Future Opportunities
Mr. Biswas Dhakal, Chairperson of Fonepay and President of F1soft emphasized his excitement in his concluding remarks about attaining interoperability in the digital payment sector, not just for Fonepay but for the entire nation. In addition to thanking the Central Bank of Nepal for their assistance, he asked the governments of Nepal and Sri Lanka to step up their efforts to promote cross-border travel, business, and trade. New opportunities for development and cooperation are anticipated to open up with the establishment of an interoperable payment system between the two nations.
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So, the collaboration between Fonepay and LankaPay is an important step toward frictionless international payments. This partnership not only helps the people of Nepal and Sri Lanka but also opens the door for more cross-border travel, business, and trade.
