Kathmandu. A few years ago, Nepal Rastra Bank (NRB) issued licenses to wallet companies. With the license granted by the Nepal Rastra Bank, e-wallet companies also started operating with great fanfare. However, the wallet company has struggled to survive.

Nepal Rastra Bank (NRB) has so far revoked the license of 7 of the wallet companies. In the beginning, many companies that came to the market with attractive cashbacks, heavy offers and frills are being revoked due to lack of business. Similarly, some companies running with licenses are going for merger when they are unable to run them.

Nepal Rastra Bank (NRB) started issuing license for digital payments from 2072 BS. Since then, about 3 dozen e-wallet companies have come into operation one after the other. However, intense competition in the market, the challenge of building a substantial user base, and the lack of a long-term business model have pushed many companies to the brink of closure.

Similarly, the attraction of e-wallet users has decreased after banks and financial institutions started providing digital payment facility through their own mobile banking app. Currently, many customers are making payments through the bank’s app. Due to which the business of e-wallet companies has been affected, such companies are on the verge of closure.

Kiran Pandit, spokesperson of Nepal Rastra Bank, says that it is important for e-wallet companies to diversify their services and bring new services as per the needs of their customers. He believes that there is a need to expand access to rural areas and collaborate with banks and other financial institutions, paying special attention to security.

7 wallet companies revoked in 6 years, 2 companies merger{

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According to the data released by Nepal Rastra Bank (NRB), there are currently 3,96,88,203 wallet user institutions. Similarly, transactions worth Rs 45.44 billion are made through the wallet monthly.

Currently, there are 31 licensed e-wallet companies. According to the Nepal Rastra Bank, the license of some companies has been canceled. In the last two years alone, about 5 e-wallet companies have shut down their services permanently. Some companies have opted for mergers or acquisitions with large companies. Nepal Rastra Bank (NRB) has also expedited the process of cancelling the inactive license in recent days. According to the Nepal Rastra Bank, 7 wallet companies have been closed in about 6 years.

During this period, the license of First Pay Technology Pvt. Ltd. has been revoked. Likewise, the license of Prabhu Technology Pvt Ltd, Paybel Nepal Pvt Ltd, Sajilo Payment Services Company, Nepal Pay Time Pvt Ltd, E-Net Payment Pvt Ltd and Mohar Digital Pvt Ltd has been scrapped. IME Digital Solutions and Khalti Private Limited have merged with each other to start integrated business from IME Khalti Limited.