The world’s leading online payment gateway PayPal could soon enter Nepal. News has emerged that Nepal Rastra Bank (NRB) is trying to collaborate with the American digital wallet to reinforce international payment for Nepali users.
The federal bank NRB has made attempts at establishing contact with PayPal, an American multinational electronic payment company. The regulatory bank’s deputy governor Bam Bahadur Mishra confirmed that the bank has sought to connect with PayPal to launch its services in Nepal. This could mark a major milestone in Nepal as it allows direct fund transfer for Nepalese living in and out of the country.
Mishra said that NRB wants to bring PayPal to Nepal to improve international payments for Nepalese. So far, Nepal-India international payment has started but the bank wants to expand the payment options beyond the two to multiple countries via a single platform.
Sharing further, Mishra added that the bank has also requested Fonepay and Standard Chartered Bank to get in contact with the California-based American digital wallet.
While most Nepali smartphone users either digital wallets, mobile banking apps, or QRs, using PayPal will unlock a new horizon in payment. It will allow international transactions with PayPal account holders across 200 countries and potentially bring transformative changes in the digital payment experience for Nepalese.
IF YOU WERE UNAWARE: PayPal like any mobile payment app, lets you add credit/debit cards, pay with QR codes, etc. It is similar to using any digital wallet in Nepal but is a globally used payment system.
Also read: Payment limit in digital wallets, bank apps, QR codes
What PayPal will bring to Nepalese?
PayPal will bring a multitude of benefits to Nepal. For e.g., it will allow Nepalese living abroad to seamlessly send money to their relatives and friends in Nepal as it supports peer-to-peer (P2P) transactions. It may also remove the mandatory need to use a credit card to send money abroad.
Though not available in Nepal, PayPal is highly popular and used across 200 countries and regions so money transfer is its biggest and most immediate advantage.
Besides, having PayPal means Nepalese can easily create accounts on freelancer websites and receive payment in their own PayPal accounts. Its launch in Nepal will mean an end to dependence on their relatives’ and foreign agents’ accounts for receiving payment which is both risky and dangerous.
Also, the government has taken aim of importing IT services worth trillion. International payment services such as PayPal cam greatly contribute in such objectives.
Next, NRB can allow businesses to transact payments within a limit. PayPal makes it easy for Nepali users to receive foreign currency in their own accounts. This also means the regulatory bank can charge a slim fee and contribute to the government revenue.
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Anyway, PayPal is a much-anticipated electronic payment system for Nepalese and its launch in Nepal could inspire a new frontier for the country’s fintech landscape.
How excited are you with the news that PayPal could be coming to Nepal? Will it bring you direct benefits for your work or services? Do share in our comment section below.
