Nepalase Laxmi Bank has introduced payments through mobile phones under the brand Mobile Money.
‘A customer can, at present, transfer funds to 10 selected customers, either post-paid or pre-paid Nepal Telecom mobile and landline bills and Laxmi Bank’s credit bills through mobile SMS,’ says Suman Joshi, CEO, Laxmi Bank.
‘At present, a customer can transfer Rs 5,000 ($70) but the bank and customer can work it out and increase the limit up to Rs 100,000 ($1,350),’ continues Joshi adding that though it costs a customer Rs 10 ($0.13) per transaction, the Mobile Money saves time and is reliable.
‘The system has been put through rigorous testing and carries a number of security features to ensure safety and reliability of financial transactions as our strong suite of electronic banking solutions is backed by strong technologies with a proven track record of innovation,’ he adds.
As its next step, Laxmi Bank is planning merchant payment system through its Mobile Money where a customer can pay bills at shopping malls. A true anytime-anywhere service, it is also planning to provide the service to non-Laxmi Bank account-holders, Joshi says adding, ‘it could be a powerful retail payment tool.’
There are around 5 million mobile phone users in Nepal and the number is increasing. ‘As mobile phone is no longer a luxury but a necessity, Mobile Money has now added one more feature – banking – to popular means of communication,’ says the CEO, who strongly advocates migration from ‘cash’ to ‘electronic’ means of payments.