Financial services

Pandemic-induced boom in e-commerce has reshaped financial services, Daraz says

Daraz Nepal held the Daraz Summit, its annual flagship event in Kathmandu on Sunday.

The one-day event brought together digital thought leaders under one roof to discuss the development of the e-commerce industry in Nepal and its prospects and challenges.

Speaking at the summit, Aanchal Kunwar, Managing Director of Daraz Nepal, said the Covid-19 pandemic has been a catalyst to increase the growth rate of e-commerce in Nepal more than expected.

“We empowered 15,000 sellers and served 1.5 million customers in 101 cities every month,” she said. “We have a vision to uplift the community,” she said.

Ganesh Prasad Pandey, secretary of the Ministry of Industry, Trade and Supply, said e-commerce platforms have helped customers compare prices before buying.

“E-commerce platforms like Daraz have helped not only customers, but also small and medium-sized entrepreneurs to build their marketing capabilities to sell their goods and services,” he said.

But still, there are many problems in the sector, Pandey said. He called on e-commerce marketplaces to do fair business while maintaining self-discipline.

Pandey also asked the Ministry of Communication and Information Technology to facilitate postcodes and Google that will benefit everyone – consumers, the governance system and product delivery cycles.

Omesh Lal Shrestha, Managing Director of CAS Group of Companies, said that in a decade, there has been a huge transformation in technology in Nepal.

Speaking at the session “From conventional to e-commerce in Nepal”, Shrestha said the growth of data transformation has increased with the expansion of 3G and 4G networks.

“There has been a huge growth in e-commerce platforms and digital payments due to the expansion of 3G and 4G networks,” he said. “As the number of digital customers increases with the growth of services and transactions, there is a need to focus on digital security,” Shrestha said.

Ambica Shrestha, group president of Dwarika’s Hotels and Resorts, said that despite the losses caused by Covid-19 in the tourism sector, the pandemic has accelerated digital transformation and technologies.

Addressing the session “From conventional to e-commerce in Nepal”, Shrestha said that different mediums of social media and online services have also changed the landscape of the tourism industry. “We can now attract domestic and international tourists through social media platforms. Social media helps to let people know about the beauty of Nepal,” she said.

Guru Prasad Poudel, Executive Director of Nepal Rastra Bank, said digital payments have played an important role in all sectors like agriculture, health, education, energy, tourism, finance and services. urban infrastructure.

According to Poudel, there are 10.2 million digital wallet users in the country, 10.7 million mobile banking users and 1.6 million internet banking customers.

“Monthly transactions worth Rs 10 billion are done through Quick Response (QR) payments while transactions worth Rs 15 billion are done through e-wallets every month,” said Poudel, addressing the session “From Conventional to E-commerce in Nepal”.

He said more than 80 billion rupees are withdrawn every month from 4,500 ATMs across the country.

Suresh Shrestha, director of foreign investment and technology transfer section at the industry ministry, said the government should come up with favorable policies to welcome new businesses. “E-commerce is not recognized by the law on industrial enterprises. But Daraz is welcomed as a service provider,” he said during the session titled “Mixing Market and Trade for the Digital Economy.”