Online payment is a process of transactions of money electronically. It involves buying and selling of goods and services where the transmission of fund or data is done through digital network or the internet. Usually the transaction refers to transfer of money from a customer’s bank or credit card account to another. Lately, online payment gateways in Nepal are getting popular and there are a number of feasible applications for the same. But, first things first:
How does Online Payment System work?
For a merchant to accept online payments, they need to have access to payment gateways. They are often provided by a third party known as payment processor. An online payment process consists of following steps:
- Customer submits the payment information* to the merchant.
- The merchant submits the payment information to the online payment gateway.
- The online payment gateway submits the payment information to the payment processor.
- The payment processor authorizes the payment and responds to the payment gateway.
- The payment gateway responds back to the merchant.
- The merchant responds back to the customer.
In other words, customers fill the form on the merchant website, they need to provide their credit card information or their online bank account details (*payment information). Then the information is verified and sent back to merchant where the merchant determines whether the payment is approved or not.
Merchant should follow security requirements to decrease the chance of the billing information and personal information theft. The transfer needs to occur over secure encrypted connections (https://, on websites). A payment service provider (PSP) offers merchants online services for accepting electronic online payments by a variety of payment methods as credit card, direct debit, bank transfer, and online banking.
E-banking is another form of online payment system which allows banks’ customers to make a range of financial transactions via their websites. Nowadays, almost all banks in Nepal provide e-banking services, as well as SMS banking.
Online Payment Gateways in Nepal
Online payment gateways have partnered with various banks today to ease the transaction processes. Because of which, customers of almost all of the listed payment service providers can buy recharge cards or top-up, pay telephone bill, electricity bill, internet bill as well as other utility bills, and book domestic air tickets. Unverified customers can only make limited transactions. One can verify their account using scanned copy of citizenship card, passport or license or any valid National ID.
Few of the popular Online Payment Gateways in Nepal include:
eSewa
eSewa is the first online payment gateway of Nepal which was established in 2009 January. Being the first electronic payment system, it is most popular among all other payment getaway in Nepal. They have linked up with as many as 44 banks of Nepal.
eSewa is compatible both on the web and on mobile devices. Users can load fund to their accounts from one of the eSewa Partner Banks. They can send fund to bank accounts and other eSewa users via web or mobile app. Users can also make transactions using eSewa SMS services.
For more information: https://esewa.com.np
Khalti
Photo: Khalti/wikipedia
Khalti is another payment service provider which is operated and owned by Sparrow Pay Pvt. Ltd. They have partnered with as many as 28 banks till date. Khalti users can use their bank accounts (of banks that have partnered with Khalti) to load funds or transfer funds via Khalti accounts or via Kiosk machine. Khalti is also compatible both on the web and on the mobile devices.
Find out more here:- https://khalti.com
iPay
Another popular one among the online payment gateways in Nepal is iPay, developed by Muncha.com. iPay has partnered with 10 banks for transactions. You can add fund to your iPay account using e-banking or mobile banking service of their partner banks. If you don’t have account/are not subscribed to e-banking you could deposit funds to iPay account on those banks as well (but, you need to contact them first).
Learn more about iPay here:- https://ipay.com.np/
If I missed any payment service provider, please comment or contact me and let the readers know about it. Have a good day! 
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