Oct 18, Kathmandu- The Nepal Telecommunications Authority will be approached to provide a service that enables banking transactions to be conducted via mobile devices without the need for internet connectivity.

Nepal Rastra Bank has released a study report on Unstructured Supplementary Service Data (USSD), determining that this payment method is suitable for implementation in Nepal.

Despite the fact that Namaste Pay has been offering this service since 2021, its reach remains limited due to issues related to convenience and concessions.

The report indicates that USSD payments may be introduced at reduced rates, allowing transactions to occur without the need for internet access.

Namaste Pay, backed by investments from the Nepal Telecommunication Authority and the National Commercial Bank, has stated that the current payment system is both costly and complex, rendering the service ineffective. Consequently, it has requested the establishment of measures to facilitate low-cost payment options.

The rise of mobile and internet banking in Nepal has correspondingly heightened the risk of cyber attacks. The study concludes that such payment methods can enhance the financial security of users.

Currently, Nepal holds the 109th position in the Cyber Security Index. It is recommended that the government prioritize the advancement of these payment systems, as transitioning financial transactions to offline methods could lead to an improvement in the country's cyber security ranking.

A significant 73 percent of households in Nepal utilize standard mobile phones, while 72 percent have adopted smartphones. The research indicates that approximately 6,666,000 households are employing both smartphones and conventional mobile devices, highlighting a considerable opportunity for offline payment services.

This type of service has the potential to reach individuals in rural regions who lack access to financial services in digital banking.

The report identified the reduction in cash flow as a chance to integrate rural areas and regions without internet connectivity into the banking sector through this service. It recommended enhancing the USSD payment system and its implementation.