Security and privacy
These are matters that both Ali and Lamichhane ask anybody thinking of using digital payment services to be extra wary about. They too are all too aware of the security risks and threats that come in this line of business, which is why they have designed their software as well as policies accordingly. It’s the reason they maintain strict activity logs, use programs to ensure clients create strong passwords, provide services that send instant notifications of transactions and so on. Apparently, their more-than-a-decade worth of experience developing software in the mobile banking sector has influenced a lot of their decisions here as well.
They also assure us that there have been no big incidents involving theft and hackings so far. There have been cases of some minor breaches but apparently, they have occurred mostly because of users own carelessness where they shared their passwords or pin numbers. In those cases, as per the protocol, the company has helped trace the IP addresses of the computers used and, in some cases, even sought help from the police.
Similarly, they have apparently also paid a lot of attention to matters of privacy to ensure that a customer’s information isn’t leaked to any third party. Data accessibility and transaction information are controlled with a lot of care to make sure the customer’s details are safe and secure.
Ali adds, “As with the case of most tech services, the laws to regulate their practice come in later on after the services have started. We might not have strict cyber regulations yet but we are regulating ourselves and working ethically so that we don’t have to compromise later on. We are doing this for ourselves as well as our customers.”
E-banking VS Digital payment portals
Many people also wondered why they should register at digital payment portals like eSewa when their bank was offering to pay their bills as part of their e-banking services. Lamichhane explains it’s all about individualistic approach. While banks business modules aren’t built around utility payments, the digital payment portals are. So as a result, you have more facilities and it’s efficient as well.
If we were to take eSewa’s portfolio alone, the services they provide are very wide. It’s not only bill payments, they have listed various bookings and subscriptions, bank deposits, vehicle installments and even DMAT accounts opening as their services. Even though services may not be applicable to all, they officially offer 12,000 to 15,000 services. Further, there are only three banks in the country that they are not partners with. So chances are that almost anyone can use their wide facilities without any problems whatsoever.
Infrastructure and efficiency
Digital payment portals boost of real time payment with no hassle, but exactly how fast are their services in reality? Lamichhane shares that 80% of their services can be done in real time. Even though eSewa’s software has been designed to be capable of processing 36,000 transactions in one second, he claims the speed of the results depends on the concerned institution as well.
“We are merely a platform. These digital payment portals don’t work on their own. We are integrated with other business and institutions. So some services also depend on how fast they respond to our requests as well,” explains Lamichhane.
For instance, if we had to carry out a newspaper subscription, eSewa could pay the required amount in time but the results also depends on how quickly the subscribed publication carries out the process.
Similarly, there is the question of proper infrastructures in the country to completely digitize the payment system. As we know we are lagging behind in the area and Ali also confirms that convincing institutions, especially government ones, to collaborate has been their biggest challenge. They have had more success with the private sector.
Nevertheless, they are hopeful. It’s not only that ‘going online’ has become a bit of a trend for various departments of the government and they are more enthusiastic about it these days, but the like of eSewa are slowly coming up with small initiatives to help local community based offices go digital.
Getting started
Believe it or not, there are many out there who haven’t given digital payment portals a try because they believe registering to the service will be a hassle. But truth be told, you won’t even need an internet connection to do so. They have made the process incredibly simple. To register at eSewa, for example, you only need to have an e-banking account and then you can send a text message to their number. That will get you started. If you want more facilities you can join them online as well.
Again, Ali states that it seems to boil down to the fact that they haven’t been able to quite explain the concept of using services like theirs yet. It’s also the reason they are welcoming other digital payment portals in the country.
“We welcome competent competitors,” says Ali, “ 500,000 users are about two percent of our population. In order to spread the word and expand the market size, we need more companies to join in.”