Nepal’s Separate QR Can Be Paid from One App to Another

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Nepal Rastra Bank has issued Nepal QR Standardization and Guidelines (Nepal QR Standards and Guidelines). The central bank has developed criteria for linking QRs used separately in the market. 

The first priority of the guideline is interoperability, i.e. the provision of scanning the QR of one PSO to another by a payment service provider and mobile banking app under another PSO. 

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Payment of QR will have to be routed from one PSO to another within the country. The QRs currently in use under the Payment System Operator (PSO) will have to be transferred to Nepal QR. It is said that Nepal Rastra Bank will set a definite deadline for that. 

NRB has stated that the separate QRs used at the beginning will be brought to the same standard and inter-operation will be maintained at the same time. These criteria and guidelines are important to promote digital payments in Nepal. 

QR payments, used as an alternative to cash and credit and debit cards are becoming popular among both customers and sellers in Nepal. Currently, payment system operators use different QR codes.

In this case, the QR developed and used by POSO can be scanned and paid only from the customer app under it. This means that customers under another PSO are not able to scan and pay on the QR issued by one PSO.

In this case, if the customer wants to pay various vendors from mobile, they have to download and manage the app separately. This has added to the burden on the user instead of the facility.

It is believed to provide a level playing field for all payment service providers. The new standards also include the necessity of interoperability, scalability, and security. 

As per the guidelines, the payment system operators (PSOs) licensed by NRB will be able to operate QR schemes and networks under NepalQR. The scheme and network is a shared payment network developed and managed by PSO. 

Which transacts transactions and payments between member organizations (wallet and mobile banking). Payment service providers wishing to operate the service under NepalQR will have to seek the approval of NRB. 

The network will not be interrupted at any time, in case of any dispute during the payment, it is the responsibility of the payment service provider to manage it, provide payment details, etc. Also, no charge will be levied on the customer while using the QR code. Instead, a transaction fee may be charged from the seller. 

However, for the widespread use of QR codes, such charges should be kept to a minimum. The International Finance Corporation had provided technical assistance to Nepal Rastra Bank to prepare NepalQR Standardization Framework Guidelines.

Author

Pooja Shrestha

Pooja is the Business Analyst at InfoTechs Nepal. A Computer Engineering graduate, she is an amazing content creator who gives life to our book of ideas. She adds the creative punch to our social media posts, videos, and blogs. She is also a fabulous artist by passion.