Esewa Money Transfer- Digitalizing the Remittance Industry
Over the past few decades, technology has advanced at an unparalleled pace, transforming the way we live and work. With the introduction of digitalization, we have seen a significant shift toward a digital world which has brought an important influence on many areas of our lives. The rise of the internet has made it possible for people to connect with each other regardless of geographical boundaries. Moreover, technology has revolutionized the way we conduct business. The rise of e-commerce has made it possible for businesses to reach customers beyond their physical location. Unlike other business industries, it has brought a massive change to the remittance industry. It has transformed the way people send and receive money across borders. The impact of technology has made remittance faster, secure, cheaper, and more accessible. Thus, it has made it easier for migrant workers to support their families back home.
With the latest digital technologies being introduced, people can send and receive money instantly. Traditional methods of sending money such as bank transfers can take several days to complete. Thus, it may cause inconvenience for the recipients who might need urgent funds. In addition to this, the fees associated with sending and receiving money across borders through traditional methods is relatively high. Digital remittance has made it more accessible and affordable for people, as it can be accessed from anywhere, at any time, through mobile phones, computers, and other digital devices. Moreover, digital remittance has made it easier for people living in remote areas, where traditional brick-and-mortar banks or money transfer agents may not be available. Likewise, digital remittance uses the latest technology which has improved security and transparency making it difficult for fraudsters to carry out illegal activities.
History of Remittance in Nepal
Remittance has become an essential source of income for many families in Nepal. According to World Bank reports, extreme poverty has decreased from almost 70% to 25% in the last 15 years in Nepal as the country receives additional billions directly to Nepalese households through remittance. The history of remittance in Nepal dated back to the 1980s when people started to migrate to other countries in search of employment opportunities. The primary destinations for Nepali migrant workers were India and Tibet initially. Later, they started to migrate to other countries like the United States, Canada, the United Kingdom, and the Gulf countries.
In the 1980s, the Nepali government began to recognize the importance of remittances and started to encourage the formalization of remittance transactions. The country’s central bank, Nepal Rastra Bank established a mechanism for formalizing remittance transactions and created Foreign Employment Act in 1985 (2042 B.S), which regulated the process of foreign employment. Since then, remittance has become a significant contributor to Nepal's economy. According to the report from the Ministry of Finance, remittance inflows to Nepal were around Rs. 42.77 billion in 2001, and by the fiscal year 2009/10, it has reached Rs. 231.73 billion. Despite the COVID-19 pandemic's disruptions, Nepal received Rs. 875 billion in remittance inflows, which accounted for approximately 24.3% of the country's GDP. With an average of 2,315 daily labor permits, the Nepali migrant workers have sent Rs. 480.50 billion in remittances in the first five months of the current fiscal year. Thus, remittance has played a monumental role in the country’s economic growth.
Necessity of Digital Remittance in Today's World
In today's globalized world, digital remittance has become a significant solution for migrant workers. As digital remittance is easily accessible, people can send and receive money from anywhere in the world eliminating the need for physical visits to banks or money transfer agents. Thus, it makes it easy for people living in remote areas where they need to travel miles to reach banks or money transfer agents. While using digital remittance, the receiver will get the money in real time. It only takes a few minutes to send money through digital remittance, thus it is particularly useful for people who need funds immediately.
Another crucial aspect of digital remittance is security. As digital remittance platform use encryption technology, it protects the transfer of funds, making it difficult for unauthorized individuals to access and steal money. Similarly, traditional money transfer methods often charge high fees for international money transfer making it costly for people to send and receive money. On other hand, digital remittance charges lower fees and offers a cost-effective and secure way to send money. Thus, digital remittance is very important in today’s digital world.
Role of eSewa Money Transfer to Digitalize the Remittance Industry in Nepal
eSewa Money Transfer, a leading remittance company in Nepal has played a significant role in promoting the digitization of the remittance industry. Additionally, it has enabled Nepali migrant workers to send money back home to their families through its convenient and secure digital platform, providing a low-cost and efficient alternative to traditional remittance channels. With partnerships with leading global money transfer companies, eSewa Money Transfer offers a wide range of transfer options, including cash pickup, bank transfer, and wallet deposit. Overall, eSewa Money Transfer is contributing significantly to the economic development of Nepal by providing a convenient, affordable, and accessible platform for a remittance transfer. Here are some roles of eSewa Money Transfer in the digitalization of the remittance industry in Nepal.
One of the major roles of eSewa Money Transfer in the digitalization of remittances in Nepal is its accessibility. eSewa Money Transfer has introduced a formal channel for sending and receiving remittances. The introduction of a formal channel eliminates the rise of illegal transfers. All the transactions that have been done through eSewa Money Transfer platform are regulated by Nepal’s central bank, Nepal Rastra Bank. Moreover, users can easily send and receive money from anywhere, anytime. In Nepal, where many people live in remote areas and might not have access to conventional banking services, eSewa Money Transfer has made it accessible for receiving money.
Wide Range of Transfer Options
With the introduction of a formal channel for remitting money, eSewa Money Transfer has also provided security while sending money. Additionally, eSewa Money Transfer also offers a wide range of transfer options, including cash pickup, bank transfer, and wallet deposit, providing users with a variety of options as per their needs. The company has established partnerships with leading global money transfer companies, enabling users to transfer money from almost anywhere in the world to Nepal. Besides, it also promotes bank deposits which offer an interest in remittance.
No Limitation on Transaction
While using the traditional remittance process, there is a limitation in sending money. You cannot send money above the mentioned limit per day. With eSewa Money Transfer, there are no limitations on transactions even while sending money to your wallet. Thus, the sender can easily send money without thinking about any limitations.
Promoting Financial Literacy
Alongside providing an accessible and affordable platform for remitting money, eSewa Money Transfer is also promoting digital remittance in Nepal. Although it provides the option of cash pickup for receiving money, it is promoting the option of receiving money through the digital channel. eSewa Money Transfer promotes bank transfers and wallet transactions. In addition to this, 80% of transactions are conducted digitally.
Likewise, eSewa Money Transfer also organizes IRR (International Remittance Regulations) literacy program to enhance financial literacy among migrant workers who are unaware of the benefits of sending money through banks and wallets. We have also launched different campaigns to promote the importance of digital remittance not only to migrants but also to international remittance partners. Additionally, eSewa Money Transfer’s contribution to the digitalization of remittance services in Nepal is also promoting the growth of the country's digital economy, contributing to its overall economic development.