CASE STUDY ON eSEWA

OF NEPAL

Submitted by: Submitted to:

-Uttam Joshi
-Dadhi Ram Ghimire
-6th sem
-Roll no: 10/072

1
Contents:

- Abstract

- Acknowledgement

- Introduction

- Overview of eSewa

- Getting started with eSewa

- Partner Banks

- How the service works

- Security via eSewa

- Challenges

- Conclusion

- Bibliography
ACKNOWLEDGEMENT:
For completing this case study successfully we
have got help from many people and websites. We are grateful to the persons and
everyone who have helped us to accomplish this project by giving us proper guidance
and required materials.

ABSTRACT:
eSewa was launched in 2009 by fintech start-up F1 Soft,
eSewa’s vision from its inception was to capitalise on the rocketing mobile
penetration across Nepal (less than 10% in 2007 to more than 65% in 20171 ). The
start-up is on a mission to simplify payments, promote digital payments and expand
financial inclusion for Nepalese people.

The eSewa solution can be accessed either through a mobile application or through
one of their 24,793 agents across the country. Users can, for instance, buy mobile
airtime, pay utility bills or deposit funds into their bank account. The application can
also be used to buy bus tickets, pay for school fees or book trips abroad. In late June
2017, eSewa received a license from Nepal Rastra Bank, the central bank of Nepal,
which will allow eSewa to provide mobile wallet services to its users, opening up new
areas for business development.
INTRODUCTION:

It is a form of direct payments and banking without

physical appearance at the MDA or Bank through the means of electronic,
interactive communication channels and other technology infrastructure. Simply, it is
easier and safer way of electronic transfer of money from one account to another
account with both customer and merchant benefited.

In Nepal there has been increasing demand for electronic payment in recent years
mainly in the urban areas. Due to rapid demand and keen interest in the newer
technology there have been positive impacts as it has ease our daily life.

eSewa is the first secured online payment gateway service in Nepal. The payment in
eSewa is done over a secured channel without exposing bank account or credit card
numbers to the merchant where we pay our bill. eSewa does not charge any amount
from our bank account when we transfer funds to eSewa. However, it does charge
fees in other cases, such as receiving payments for goods and services or receiving
payments made using debit or credit cards.

In our case study we are concerned about electronic payment provided by e-Sewa.
Overview Of eSEWA:
Esewa is Nepal-based company mainly focused on electronic
payment system. It is one of the major service provided by f1soft.com which is the
well-known name for safer and easier way to pay online. It offers a state-of-art
payment gateway solution that incorporates some of the latest integrated techniques
developing a secured, fast, and real-time gateway. . It has been growing as trusted
company because of its quality service to its customers.

Though there are others payment gateways e-sewa has become the first choice due to
its goodwill. More than twenty five thousand of customers with sixty five percent of
active customers have been benefited by its services and the number of users is
increasing day by day.
Services provided by e-sewa:
 Send and Receive Money
 eSewa in Mobile
 Pay Utility Bills
 Buy Air Tickets
 Buy Recharge Cards
 Pay School, College Bills
 Pay Internet Bills
 Subscribe Newspapers, Magazine
 Pay Credit Card Bills
Getting Started With eSewa:

- Users sign up with an eSewa agent, from the mobile app (Android or iOS) or
through the web portal using their mobile number as their eSewa account ID.

- Users can load funds into their eSewa account through their bank account (m-
banking, bank vouchers) or by handing cash to an eSewa agent.

- Users can then make payments either directly (online using the app or offline using
SMS) or through one of the agents. eSewa takes a commission on each transaction.

Beyond its Android and iOS apps as well as its mobile responsive portal,
eSewa also offers non-smartphone users the possibility of accessing their services
directly through syntax-based SMS transactions or JAR5 -based mobile applications
for feature phones.
Partner Banks:
1. NIC Asia Nepal Bank Limited

2. Global IME Bank Limited

3. Everest Bank Limited

4. Nabil Bank Limited

5. Rastriya Banijya Bank Limited

6. Citizens Bank International Limited

7. NMB Bank Limited

8. Prabhu Bikas Bank Limited

9. Kumari Bank Limited

10. Janata Bank Nepal Limited

11. Clean Energy Development Bank Limited

12. Commerce and Trust Bank Nepal Limited

13. Kailash Development Bank Limited

14. Kist Bank Limited

15. Nepal Bangladesh Bank Limited

16. Nepal Credit and Commerce Bank Limited

17. Siddhartha Development Bank Limited

18. Sunrise Bank Limited

Partner Merchants :
1. APCA Nepal

2. BhatBhateni Online

3. BIG Movies

4. Birthday Forest

5. Broadlink

6. Buddha Air

7. Bus Nepal

8. ClassicTech

9. Colors Mobile

10. Dish Home

11. FCube Cinemas

12. WorldLink

13. Ncell

14. Nepal Electricity Authority

15. Nepal Telecom

16. QFX Cinemas

17. Radius Communications

18. Share Sansar

How The Service Works:

A consumer having eSewa account can have online fund transfer from one bank
account to another account without disclosing consumer account name and number.
Consumer use eSewa to form a private session using SSL protocol. Here, private and
confidential information are encrypted securely before transmission of information
among business partners. The users can use their mobile or Internet services to use
the services both offline and online.
Security Via eSewa:
eSewa is the safer, easier way to pay. We can use our credit
card/Bank account with eSewa, and get all the benefits - without exposing
our bank account/card number. Customer's financial security is highest
priority of e-sewa. eSewa uses SSL technology to keep information safe. In
addition, when customer sends payment using eSewa, the recipient won't
receive sensitive financial information like your credit card or bank account
number.

Challenges:
Challenges that esewa must deal are mainly government
regulations and limited use of electronic payment in Nepal. In Nepal credit card
payment has not yet emerged. Although, few banks provide credit card facility,
people do not use credit card. It may be because credit card cannot be used for
international purchase due to government policies. Since, Nepal is receiving only
country it has been difficuilt for esewa to establish itself internationally. On the other
side, people prefer hand cash than the digital cash.
Conclusion:
E-Sewa has evolved as a dynamic and interactive platform for electronic
payment. It has changed the way of payment, gradually replacing the traditional way
of payment. Its success has been remarkably acknowledged by more people in urban
areas where there is a good infrastructure for internet and network services. It is
expected that the way e-sewa is emerging will definitely serve the people ensuring
more security, reliability and efficiency in the coming days.

Recommendation:
Even though eSewa is a safe and secured means of e-payment in Nepal, there are
some aspects that we would like to recommend for improvement in eSewa services.
Following are the areas of improvement:

 Frequently update Security mechanism to maintain trust worthy online

transactions.
 Simplify the User access System for less educated people.
 Arrange back up servers to counter power cut problem.
 Allow 24/7 customer service from anywhere within Nepal.
 Arrange Payment gateway facilities beyond the territory of Nepal.
Bibliography:
 https://eSewa.com.np
 http://f1soft.com/esewa.html
 https://www.gsma.com