Nepal Telecom, the country’s largest mobile operator by connections, is reportedly set to launch mobile money services in partnership with state-owned Rastriya Banijya Bank.
Industry news outlet Nepali Telecom, reported the operator will form a subsidiary company to support the new service. The agreement was signed at an event overseen by the country’s prime minister Khadga Prasad Sharma Oli.
Nepal Telecom or its new subsidiary will require clearance from the country’s communication authority, with a licence from Nepal’s central bank also required. Reports state the operator plans to offer shares in its new company to outside investors.
The yet-to-be named mobile money service will be used for payments and cash transfers, with suggested use cases including utility bills and branchless banking in remote areas. It will use an agent network across the country for deposits and withdrawals.
GSMA Intelligence figures for Q1 2019 show Nepal Telecom had 21 million connections on its network, including cellular IoT.