Nepal Bank is set to become the first in the country to launch an NFC mobile payment service, using a solution provided by Nuspay that also makes use of tokenization. The service is currently “in the implementation phase” and, despite the recent devastating earthquakes, is still expected to launch in July.
To use the service, customers need to download a co-branded Nepal Bank and Nuspay mobile app and link their bank account to it. They will then be able to make a payment by tapping their NFC phone against contactless-enabled terminals.
“The service uses our secure tokenization method, the Nuspay Virtual Account Solution (NVAS), which is a unique payment solution not linked to any particular debit or credit card but directly based on the customer’s bank account where real information of a customer is never disclosed,” Nuspay India’s CEO Harmeet Singh Sethi explained to NFC World.
“With this solution, the bank can offer its customers a fast and convenient way to handle transactions, without ever disclosing sensitive information. This is the first launch of NFC in the Nepal market and it allows a more flexible payment option for customers. It is for both NFC phones and tags and is available for all phones, including Android.”
“Virtual Account replaces sensitive personal data with a temporary payment token. This token is generated for every time on request against customers’ bank account details and not against the debit or credit card details,” the company explains.
“The token is created with a very short life span, with a specific amount, to only the targeted beneficiary and upon the customer’s authorisation. All transactions handled by Nuspay take advantage of our Virtual Account processing method.
“This payment technology is relatively easy for banks to deploy; they don’t have to replace their legacy banking systems. Instead, they can connect their existing systems to the Virtual Account management package through an integration layer.”
“Nuspay’s partnership with Nepal Bank Limited and the future integration of technology with our extensive network will enable the bank to better serve consumers and merchants in Nepal,” says Raju Nath Khanal, deputy general manager at Nepal Bank.
“Our commitment to transform the banking experience through innovative payment solutions has led us to jointly launch the Virtual Account tokenized payment solution in Nepal. We look forward to a long-lasting relationship with Nuspay.”