Online payment and Digital wallets
Online payment is simply a transaction made over the Internet using any electronic means. There are various modes of online payments like credit cards, PoS machines, online banking, etc. Digital wallet, also known as e-wallet is one of the mediums of making online payments. Around the globe, various digital wallet companies are on the rise like PayPal, Amazon Pay, Apple Pay, Paytm wallet, PhonePe, etc.
In Nepal, the oldest and one of the most popular digital wallets is eSewa. eSewa allows users to make utility payments, recharge mobile phones, pay for online shopping, and many more. Now, users can even visit brick-and-mortar (physical) shops and pay online using Scan and Pay facility.
Mobile payments are getting bigger everyday
Smartphones have become an important part of people’s everyday life. According to GATE’s Mobile Wallet Trends Annual Report, payments using mobile wallets have increased by nearly 30% from 1.6 billion consumers recorded at the end of 2017. Also, Global Data’s Online Consumer Payments Analytics suggests that card payments are losing their share of online payments in favor of digital wallets and other alternatives. In 2018 alone, digital wallets and other online payment alternatives exceeded 50% share of overall online payments.
Also, in Nepal, use of digital wallets are increasing steadily. Everyday, more people are entering the world of digital payments.The government’s aim for a Digital Nepal is expected to have a significant impact in the online payment landscape of the country. Moreover, with the introduction of Scan and Pay, use of digital wallets are entering even the traditional market like simple grocery stores.
Online payments and Digital wallets becoming a part of everyday life
The acceptance rate of online payments as part of everyday life has gone up. Most of the people have started paying their electricity and drinking water bills using online payment gateways. Taking this into consideration, the government’s plan to make electricity and drinking water payments fully digitalized is expected to boost online payments’ growth even more. Apart from utility payments, online shopping is also gaining popularity and online payments for shopping are being started to be viewed in a positive light. Finally, the widespread availability of QR table-top at all kinds of stores from grocery stores to coffee shops to shopping malls is also enhancing the use of digital wallets and making e-wallets a part of people’s everyday life.
All in all, we can say that online payments, especially digital wallets are gaining popularity especially with the rise of smartphones and are becoming a part of everyday life.