Proposal

For
Enabling Payment Service Digitization

Submitted By

Nepal Payment Solution Pvt. Ltd

Sundhara – 11, Kathmandu, Nepal

(Payment System Operator licensed by Nepal Rastra Bank)

 Table of Contents

Our Unique offering 2

Phase I 2
Phase II 3

Our Strength 3

Benefits to Bank 4

Aggregated Payment Gateway 5

Transaction Flow 6

One Link 7
Transaction Flow Case 1 8
Transaction Flow Case 2 9

Link Account 10

Corporate API Banking 11

InstaFund 11

International Payments 13
Current Scenario 13
Our Plan 13
Small Value Payments (Domestic & International) 13

Our Current Banking Partners 14

Upcoming Banks 14

Few of our transaction partners 15

Commercials 16

Conclusion 16
Our Unique offering

Banks can use/offer following products phase wise after enrollment in NPS

Phase I
1. Whitelabled Payment Gateway
Aggregated Payment Gateway can be offered by the banks to their
customers as their own Payment Gateway. We are integrating International
Payment Gateway as well in the same aggregated payment gateway. This
enables banks to even offer the IPG without the need to invest millions and
enjoy the service fee sharing on every transaction.

2. OneLink
It is a short URL based payment instrument which can be embedded to
your existing SMS that are being sent to your users to convert the sms to a
payment collection instrument.

3. Link Account
Bank can offer the account linking function to its merchants or customers
without the need to deploy separate middleware at the bank’s end. This
saves infrastructure investment at the bank’s end.

Other basic products such as interbank fund transfer are mentioned in the
document below.

Products in this phase are ready to deploy and live products.

Phase II
1. Smart Invoice: Digital Invoicing System
2. Direct Debit: Automated Pull based Payments
3. International Payments: Cross Border B2B and B2C Payments
Our Strength

Following are the strong foothold of Nepal Payment

1. Full Fledged PSO License

2. NRN Backed entity
3. Only payment organization with PSO license from PSD, NRB and Forex
Dept, NRB.
4. Only payment organization with cross border B2B, B2C fund movement
capability.

Benefits to Bank

1. No investment towards Bank side

2. Additional revenue source

3. One Point integration for All PSPs and other merchants

4. Without any investment, offer a full fledged Payment Gateway with all
available Payment instruments to your merchants. Instruments include
E Banking and Mbanking from all member banks, Ewallet checkouts and
VISA card Processing both Domestic and International.

5. Wider digital reach with MFI, Cooperative and Cross Border

6. Float from all associate members and Corporates for usage of Nepal
Payment service

7. Introduce and explore new avenues of payment collection and

disbursement.

8. Inward Cross border payment (B2C/B2B) and Inward Fund Transfer

capability.

9. Decrease Operational hassle of having to integrate and support

multiple PSPs.
Aggregated Payment Gateway

Although many payment facilitators are now providing payment facilities to

merchants and SMEs, there still isn't a single interface interconnecting all of the
payment providers into one. Nepal Payments aggregated payment gateway is
an approach where customer can connect to single payment API and get
aggregated payment interface containing almost all of the available payment
instrument in Nepal, some of them are:

1. International Card Payments

2. Domestic Card Payments
3. Mobile Banking Checkout
4. eBanking Checkout
5. eWallet Checkout

Furthermore, this PG is an API Based whitelabeled solution offered by NPS to our

Network banks. This enables our network banks to offer the Payment gateway to
its customers.

In the Aggregated Payment Gateway, NPS is on the verge of integrating

Visa/Mastercard online processing gateway (Domestic/International). It will be a
part of the offered PG and banks can offer it without the need to invest a huge
sum to get the processing switch itself.

PCI DSS Certification of NPS is also going on and we expect to receive the
certification soon. Once it is done, we will further offer the IPG in the Card on file
model as well. This will further supplement our member banks to offer its clients a
card linking module as offered by Stripe internationally.
 Fig : Bird Eye View
Transaction Flow

Example Use Case

Ebanking or Mobile Banking users of your bank visits an online shopping site ,
which has integrated NPS Aggregated Payment gateway in their checkout page,
and tries to make payment through their e banking or Mobile Banking Checkout
option present there.
 Fig : OnePG Transaction Flow

Since OnePG is an API based PG its nature changes according to the platform it is
integrated in. For example, If wallets integrate the PG it becomes a Load Wallet
Banking API, if school or college integrates the PG it becomes a fee collection
banking API.
This PG can even be used by banks to collect account deposits while opening an
online account.
Benefits to Bank

1. Single Integration: NPS single integration with Bank’s e-Banking/

Mobile Banking interface is enough to cater the payment services to
all its merchants( ewallet, ecommerce, payment collection and so
on). Any new integration requests to the bank can be redirected to
NPS for ease of use, as our merchant automatically becomes the
bank's merchant without any hassle.

2. White label Solution: Since NPS provides a white label payment

solution and is providing payment acceptance to digital merchants,
banks can introduce NPS as their own payment gateway platform
and offer payment acceptance through all the other channels
offered by NPS to all markets with just one integration.

3. Commision: With so many features and benefits to the bank, it is also

noteworthy that all the payment acceptance and transactions bear
certain commission to the bank, making this deal a win-win for the
bank.

4. Hassle-less Settlement & Reconciliation: As our system is automated,

any and all reconciliation are automated by the integration. A single
point of contact from the bank is enough for NPS to reconcile/
refund any transactional issue beyond technical issues. Also as all
transaction land in NPS's settlement account maintained at the
bank’s branch, there is no issue regarding the settlement.
One Link
A One link checkout is a way to request payment from customers who are paying
for goods or services outside of a traditional online store purchase. It’s essentially
a “Pay Now” button sent to customers via email/sms/viber/whatsapp or any other
medium. Once customers click the link they’re taken to a payment gateway
checkout page showing the due amount. They can choose their desired payment
platform and securely fill in information if required, and the process is complete.

We have envisioned Onelink to be used for two cases primarily.

1. To collect normal payments
2. To collect EMIs and other banking related Payments

In either case, NPS does not receive any data regarding the purpose of the
payment being done through the link.

One link can be used by our member banks as well to make payments and fees
collection easier by converting the payment reminder sent via SMS or Email to a
payment initiating instrument.
Transaction Flow Case 1

Example Use Case

Bank sends Credit Card payment due SMS/Email to customers and attach
payment link (one link) to it. Customers click the link and are redirected to the
OnePG Checkout page where they can pay their due amount from their desired
platform. In this case the Bank itself is the merchant.

Fig : One Link Transaction Flow

Transaction Flow Case 2

Example Use Case

Bank sends Loan EMI Payment SMS/Email to customers and attach a payment link
(one link) to it. Customers click the link and are redirected to the OnePG Checkout
page where they can pay their due amount from their desired platform.
In the first case, Bank/Merchant sends an amount during the link creation process
itself but in the second case, the amount is only sent to OnePG when the customer
clicks the link to make the payment.

Fig : One Link Transaction Flow

Benefits to Bank
i. Mode of payment collection via link: The link can be received through
the means of delivery services such as SMS, email, Viber, Whatsapp,
etc. One link offers a proper utilization of payment reminders alerts
which has only been used for information but can also be further
used for payment collection.

ii. Reminder with an action: Customers will receive the link via any

medium and they can click on the link to make the payment. Our

solution supports an automated Payment reminders to automate

collections

iii. Create and Share multiple Links at once: One link supports both
individual and bulk link creation. Organizations can either choose to
create a single link for an individual customer or can upload a batch
file for multiple customers.

Other Implementation Scope

● School and College fee payment
● Online Shopping
● Other Merchant Payments
● EMI Collection
● Demat Renewals
● Credit Card repayment
● Fees Collection
Link Account

At the moment various PSPs as well as other digital merchants are looking for an
easier mode of payment collection. Some PSPs have deployed their middleware in
the bank itself to achieve the link account in their respective wallets. Though this
modality is working at the moment, banks don't have any control over the linked
account’s linking process as well as unlinking and monitoring of the transactions
being done through the linked account.
In this scenario, NPS is offering the link account as a service to our member PSPs
as well as other digital merchants when necessary. The offered service is a token
based linking module where the token generated by the bank for an account (
after proper validation process ) is not directly shared to the PSPs but rather a
separate token is generated by NPS for the token generated by the bank and
shared to the PSPs and other merchants. This model implements a layer of
security on the bank’s side. Even if the merchant’s system is compromised and
the stored tokens are exposed, it cannot be used directly to carry out financial
transactions at the bank’s end.
When linking a bank account to PSPs or other Merchants, the account ID [ Mobile
Number ] used to maintain the account on the merchant’s end must be the same
as the registered mobile number maintained at the bank’s end. We don't allow
bank accounts linking to the IDs created from other mobile numbers.
 Fig: Process flow for Link Account

Benefits to Bank
● Transaction directly from a bank account
● Increase in customer transaction Limit
● Support Multiple account linking
● Easy withdrawal and payment
● No need to Load fund into wallet
Some other Implementation Scope
● Ewallet
● Ecommerce
● Fee Payment
● Broker Payment
Corporate API Banking

Corporate API Banking is a mechanism where a business/corporate house can

turn their existing tools like HR Management System, Billing Software,
accounting software etc to a banking product via connecting various Banking
APIs to them. With this the need for multiple channels like eBanking , statement
collection etc will be reduced and functions like fund transfer, bulk transfer and
corporate payments can be done in a click.

InstaFund

InstaFund is a Inter Bank and Financial Institutions (BFIs) Fund transfer service
connecting various aspects of the customer banking experience. Customer can
move or send money to any of the following institution via InstaFund:

1. A Class Banks
2. B Class Banks
3. C Class Banks
4. Ewallets
 Fig: Instafund Bird Eye View

Example Use Case

○ Customer of Merchant transfers Fund of Nrs. 10,000 to Destination bank
○ Fund Transfer Charge is Nrs. 10
○ Merchant has its settlement account in Source Bank
 Fig : Insta Fund Transaction flow

Scope of Insta Fund

i. International and Domestic Remittance tranx real-time
Settlement:
In the current scenario of remittance, where account deposit is
increasing day by day, IBFT will enable any and all Remittance, either
International or Domestic, to be received and settled to a destination
bank account in realtime. By use of this services all parties involved
in the remittance can be benefited, i.e.

a. Real time settlement of Agent Receivable

b. Realtime crediting of Customer’s remittance into any
participating bank account
c. Added milestones and transparency to remittance
companies.
 ii. Bank as a clearing House.
By enabling IBFT services, the bank automatically becomes a
clearing house and the usage of services can be done on a larger
scale.
● Scheduled Salary disbursement to any bank account,
● Automated & scheduled bill payment,
● Cash-out services for e-Wallets,
● Subscription model for businesses etc
● All types of fund disbursement.
are some of the few examples that can be achieved from the
services. In all these scenarios the bank will be the clearing house for
any and all transactions associated and also by doing so the bank
enjoys the perks of deposits to its bank for availing those services.
Note : Further scope can be explored as per requirement of participating
Banks.

Benefits to Source Bank

i. Deposits from all participating merchants
ii. Extra Earning to the Bank
iii. Value added services to its customers
iv. Scoop of evergrowing remittance business earnings

Benefits to Destination Bank

i. Wider channel for banking
ii. Scoop of evergrowing remittance business earnings
iii. Extra Earning to the Bank
iv. Value added services to its customers

International Payments
Since NPS is the only PSO with initial capital of 250 Million and Licensed by NRB for
Cross border B2B and B2C payments . Our target market potentially is
International Payment which is the current need of the hour.
Current Scenario
1. Firstly, all international payments B2C or C2B are based on swift, an
average swift cost is around $25-$50 and the exchange rate is very poor
2. There is no end-end ownership of payments or fund transfer done, there
are many cases of Kickbacks to the beneficiary as well
3. Availability of fund in not immediate rather takes from 1 day to 3 days
4. Most Remittance companies are only licensed for inward C2C fund
transfers

Our Plan
1. Low fund transfer and payment fees towards sender from 1% to max Rs 500
depending upon the nature
2. End to end ownership of payments
3. Real time transfers and availability of funds
4. Quick support and grievance handling
5. Cutting major Swift costs

Small Value Payments (Domestic & International)

If we consider the ticket size of a payment/ fund transfer many operators fail to
address the Small value Payments and Fund transfer needs. Most Operators work
towards $100 and above transactions however there is a big business that is in
small value payments and we plan to address that through rollout of our network
in the country.
Our Current Banking Partners
Few of our transaction partners
Remittance Connection
Commercials

Above mentioned products will have following commercial arrangement:

As an Issuer : 20% of transaction fees

As an acquirer : 20% of transaction fees

Conclusion

The company has been formed by a group of professionals having vivid

experience and wide exposure in Information Technology and Digital Payments.
People involved in it are young qualified business graduates and qualified
technology engineers and other relevant fields mainly from Nonresidential
Nepalese (NRN) residing around the globe who have association networks over 80
countries.

Nepal Payment has a vision of becoming a trusted Third Party Digital Payment
Processor by deploying interoperable open loop technology which can serve as
many Bank and Financial Institutions (BFIs), PSPs, Cooperatives and other
payment related institutions as required in efficient manner by integrating them
into the Platform. By joining in this ecosystem based PSO Platform, all participating
BFIs will benefit from economies of scale and can sell their services into
cross-platform networks and increase their business efficiency and proceed with
enriched customer satisfaction.