The Nepal Rastra Bank granted Sajilo Pay Payment Services Pvt Ltd permission to operate as a payment service provider at the end of March (PSP).
Sajilo Pay immediately began its transaction with a capital of Rs 10 million. This brings the total number of companies with such permission in Nepal to 28.
Four other companies had received the same permission from the central bank just days before Sajilo Pay. It also issued licenses to around a dozen other businesses in the current fiscal year, despite the fact that the previously licensed wallets have struggled to make a profit.
In Nepal, the majority of e-wallets are struggling to stay afloat. eSewa, Khalti, and PrabhuPay, e-wallet companies with more users, have also seen a drop in sales. It has compelled e-wallets to sell their licenses or combine with others in order to continue operating.
Old is Gold
Nischal Adhikari, the director of the Payment System Department of the NRB, says that the market has been good for those who obtained licences before 2017 only. “It is almost natural for people to open multiple bank accounts,” he says, adding, “But, there is no habit among people to download or maintain more than one wallet. So many have old customers, but the new ones have struggled.”
Kusum Lama, the operator of PrabhuPay, says although it is a good thing that more companies have caused competition, there is a need to merge the wallet services. “They should work on improving their services.”
PrabhuPay is the first company to get a licence and its customer base has been good. Apart from this, wallets like eSewa, IME Pay, and Khalti have a good customer base too. Only the companies that came into operation this current fiscal year have not been able to expand the market.