UnionPay International gets license of payment services operator
July 24, 2019 09:14 AM NPT
KATHMANDU, July 24: UnionPay International Company Ltd, a Chinese payment service company, has acquired license from the Nepal Rastra Bank (NRB) to work as payment system operator in Nepal.
The central bank issued license to UnionPay last week, paving legal way for the Shanghai-based company to work as payment systems operator in Nepal. Dev Kumar Dhakal, chief of NRB's Payment Systems Department, confirmed Republica that UnionPay International has acquired the license for payment systems operator.
As a payment systems operator, UnionPay will be allowed to carry out electronic card network and payment switch-related activities in Nepal, according to the central bank.
In her Twitter post published Tuesday, Chinese ambassador to Nepal, Hou Yanqi, congratulated UnionPay International for obtaining the first payment systems operator license for international company in Nepal. “We expect and encourage more Chinese companies to come to Nepal to conduct business under the premise of compliance,” she added.
The Chinese payment company has entered Nepal after the NRB issued warning against use of foreign payment service except those licensed by the central bank. Stating that the use of unlicensed foreign payment system was illegal, the NRB had few weeks ago issued a public notice warning all those carrying out transactions from unlicensed foreign payment system.
The central bank issued the notice following news reports in media about the growing use of Chinese digital payment platforms in Nepal, like WeChat Pay and Alipay, particularly by Chinese tourists.