Kathmandu College of Management

E-COMMERCE PROJECT REPORT

eSewa

Ayush Man Tamrakar

Pallavi Pradhan

29th May 2014

Bibushan Bista

Faculty

Kathmandu College of Management

TABLE OF CONTENTS

About F1 Soft ...................................................................................................................... 3

Mission ............................................................................................................................ 4

Vision .............................................................................................................................. 4

Core Values ..................................................................................................................... 4

F1Soft and eSewa ............................................................................................................... 5

Analysis of eSewa ............................................................................................................... 6

About eSewa ....................................................................................................................... 6

Objectives of eSewa ........................................................................................................ 7

eSewa - Type of Application .......................................................................................... 7

Advantages of eSewa ...................................................................................................... 7

Market of eSewa ............................................................................................................. 8

Partner Merchants ........................................................................................................... 8

Partner Banks .................................................................................................................. 9

Functional Analysis of eSewa ........................................................................................... 10

Major Components of eSewa: ....................................................................................... 10

Technical Analysis of eSewa ............................................................................................ 12

eSewa –Availability ...................................................................................................... 12

Database, Scripts and Security ...................................................................................... 13

Recommendations and Conclusion ................................................................................... 13

Snapshots of eSewa........................................................................................................... 14

ABOUT F1 SOFT

F1Soft International, an ISO Certified company,

is one of the leading companies for developing

and deploying enterprise products on transaction

banking. The Company was duly established in

2004 and has presence in Nepal, Singapore,

Cambodia, India and Bangladesh.

F1Soft International has created an image of its

own in the field of Software Development and IT

related services through the course of its persistent efforts for the last 8 years. The

Company has built up an impressive list of clients, most of which comprises of leading

Banks and Financial Institutions, Corporate Houses, Industrial firms, Media Houses,

Telecoms, Travel Agencies and other Organizations which bear a name in their field.

F1Soft International has created a unique distributed structure, and steadily continues to

expand its software development activities. We employ highly qualified and skilled

software Engineers with in-depth understanding of transactional banking. In view of the

quality and wide range of services as well as the growing number of Clients, F1Soft

International stands out amongst numerous Software Companies. In this regard, we

assure you that we do provide you with the security and operational framework that your

organization requires.

Mission

Be the most trusted provider of transaction banking products to Banks/ Financial

Institutions and Telecoms in South Asia, South East Asia and Middle East by 2017.

Vision

Always ahead with innovative products

Core Values

Focused- We know that focus is highly essential in delivering/developing the class

products/services and hence every member of the company remains focused.

Innovative- Innovation is the heart of F1Soft and every individual in the company is

encouraged to come up with new ideas.

Reliability- Our promise to customers would not come true if our products and promises

are not reliable enough to meet the international standards.

Social Responsibility- As a part of the society, we are concerned for the well-being of

everyone and not only F1Soft.

Team Spirit- We are fully aware of the strength of a team and synergy it creates for our

common success.

F1Soft and eSewa

The international economy is being increasingly ‘electronized’, with more and more

transactions occurring online and electronic payments increasing significantly to the

extent that they are surpassing paper based payment instruments. Also, the internet is

being tapped for servicing the rural populace due to significant cost benefits and the reach

afforded. However, to facilitate increasing volumes, security and efficiency are essential

and so is the required infrastructure. An internet e-commerce payment gateway is a

critical infrastructural component to ensure that such transactions occur without any

hitches and in total security over electronic networks. A payment gateway is the access

point to the national banking network. All online transactions must pass through a

Payment Gateway to be processed. In effect Payment Gateways act as a bridge between

the merchant’s website and the financial institutions that process the transaction. So,

F1Soft has developed eSewa to fill the gap and serve as a bridge.

The payment gateway can change the business processes as well as customer’s culture

and lifestyle. Many corporate houses who are really enthusiastic to elaborate and speed

up their business are completed to execute traditional payment module due to lack of a

robust payment gateway can play the key role to transform the business.

Analysis of eSewa

In Nepal there has been increasing demand for electronic payment in recent years mainly

in the urban areas. Due to rapid demand and keen interest in the newer technology there

have been positive impacts as it has ease our daily life.

About eSewa

eSewa is Nepal-based company

mainly focused on electronic

payment system It is one of the

major service provided by

f1soft.com which is the well-known name for safer and easier way to pay online. It offers

a state-of-art payment gateway solution that incorporates some of the latest integrated

techniques developing a secured, fast, and real-time gateway. . It has been growing as

trusted company because of its quality service to its customers.

Though there are others payment gateways eSewa has become the first choice due to its

goodwill. More than twenty five thousands of customers with sixty five percent of active

Objectives of eSewa

Established with an aim to help and support e-commerce business, eSewa allows

payments and money transfers through internet and serves as an electronic alternative to

the traditional complicated paper methods such as cheques and money orders.

eSewa - Type of Application

eSewa is available in two modules: B2B and B2C.

eSewa specializeS in Secure Real-time transaction processing service and support. eSewa

online payment gateway performs payment authorization and authentication, and makes

settlement of funds between Banks, Merchant and User(Customer).

Currently, it provides the following online services:

1. Sending and Receiving Money

2. Payment of Utility Bills

3. Purchase of Air Tickets and Movie Tickets

4. Purchase of Recharge and Calling Cards

5. Payment of School and College Bills

6. Payment of Internet Service Bills

7. Subscription of Newspapers and Magazines

8. Payment of Credit Card Bills

9. Facility of all eSewa services through mobile phone

Advantages of eSewa

1. Full 24x7x365 convenience

2. Rapid and efficient transaction processing

3. Multiple payment options

4. Secure flow of transaction details among buyers, sellers and financial institutions

5. Flexible and powerful real time report generation

6. Facility for customer refund

7. Merchants can get rid of large databases, extensive processing and complex

software

8. CA (Certifying Authority) authenticated secure servers

9. Ability to provide value added services to merchants, acquiring and issuing banks

Market of eSewa

eSewa is an online payment gateway with hosted wallet as Nepal’s first online payment

gateway in order to foster the e­commerce and also to bring the financial services to the

unbanked sector as well.

Currently, there are 21 major banks and financial institutions of Nepal in eSewa Network,

a customer base of 1,20,000 and more than 800 Merchant partners. It can be basically

accessed by two modes: web and mobile. eSewa Mobile application is a sms based

application for mobile devices.

Partner Merchants

1. APCA Nepal

2. BhatBhateniOnline

3. BIG Movies

4. Birthday Forest

5. Broadlink

6. Buddha Air

7. Bus Nepal

8. Classic Tech

9. Colors Mobile

10. Dish Home

11. FCube Cinemas

12. Mytrip2nepal

13. Ncell

14. Nepal Electricity Authority

15. Nepal Telecom

16. QFX Cinemas

17. Radius Communications

18. ShareSansar

19. Smart Cell

20. Vianet Communications

21. Western Union

22. WorldLink

23. Yeti Airlines

Partner Banks

1. Ace Development Bank Limited

2. Business Universal Development

Bank Limited

3. Citizens Bank International

Limited

4. Clean Energy Development Bank

Limited

5. Commerz and Trust Bank Nepal

Limited

6. Everest Bank Limited

7. Global IME Bank Limited

8. Janata Bank Nepal Limited

9. Kailash Development Bank

Limited

10. Kist Bank Limited

11. Kumari Bank Limited

12. Nepal Bangladesh Bank Limited

13. Nabil Bank Limited

14. Nepal Credit and Commerce

Bank Limited

15. NIC Asia Nepal Bank Limited

16. NMB Bank Limited

17. Prabhu Bikas Bank Limited

18. Purnima Bikas Bank Limited

19. Rastriya Banijya Bank Limited

20. Siddhartha Development Bank

Limited

21. Sunrise Bank Limited

22. Tinau Development Bank

Limited

23. Tourism Development Bank

Limited

24. Triveni Bikas Bank Limited

25. Yeti Development Bank Limited

Functional Analysis of eSewa

eSewa is backed up by enterprise standard software developed by F1soft

International. All the business processes are seamlessly integrated in the application

and are available 24/7. As eSewa is aimed to allow payments and money transfers to

be made through internet, all the access channels have been secured at software,

hardware and network level.

The simple principle behind it is use of encryption software at transport layer to make

financial transfer between the computers.

Major Components of eSewa:

1. Customer

People from all age group, from a small kid to an old woman, as they shop are

all feasible customers of eSewa. But it requires you to identify you yourself to

make any payments, so we do assume and target out customers to be at least

young enough to understand the payment system and its flow.

Customer Types

a. Basic Customer – General Service Access

The customers who have been registered through web/mobile and

availability of limited information to us are categorized as ‘General

Service Access’ customers or basic customers

b. Standard Customer – All Service Access

After the customer verifies his/her photo identification document, the

customer is upgraded with ASA authority. They will have unlimited

transaction and access to all the services of eSewa

c. Zone Customer – Agent Authentication Access

Customers can upgrade themselves to become AAA customers and can

be referred as eSewa agents. They will have to submit their business

documents and fill up a form designed for the agent request. Agents

will be eligible to apply to verify customers for eSewa.

2. Merchants

Merchants are another major component of eSewa as it their goods and

services that are up for sale. They have the key role to perform and eSewa

efforts them to enlist their participation in the system. Any business that is

physically or virtually operating is eligible to become Merchant in eSewa, if it

falls under the rule and regulation of the government of Nepal and agrees to

receive payment online.

3. Partner Banks

Partner banks play the major role in eSewa as they are behind the scene to

hold the actual transaction of any payment process. eSewa is just virtual

representation of the transaction that actually occurs amongst the settlement

bank and the partner banks. As a bank cannot acquire all the merchants nor it

can entertain all its customers to pay all the merchants, eSewa provides a

common platform to share the merchants and customer payments in Nepal.

Technical Analysis of eSewa

eSewa is a safer and easier way to pay. A customer can use their credit card/Bank

account with eSewa, and get all the benefits - without exposing their bank

account/card number. Customer's financial security is of the highest priority of eSewa.

As eSewa is aimed to allow payments and money transfers to be made through

internet, all the access channels have been secured at software, hardware and network

level. The simple principle behind it is use of encryption software at transport layer to

make financial transfer between the computers.

eSewa uses SSL technology to keep information safe. In addition, when customer

sends payment using eSewa, the recipient won't receive sensitive financial

information like your credit card or bank account number. It is a form of direct

payments and banking without physical appearance at the MDA or Bank through the

means of electronic, interactive communication channels and other technology

infrastructure.

eSewa –Availability

With the massive increasing mobile users in Nepal, eSewa provides the only payment

gateway for various transactions. Now using the eSewa app, available for all mobile

platforms including Android, iPhone, Java and Blackberry, eSewa service users can

make payments to various merchants and Service Providers, transfer money with

simple gestures from their phone. eSewa Mobile applications is SMS based, for

outreach of broader user base.

Although eSewa request can be enquired by SMS, the eSewa application adds the

advantage by freeing users from remembering syntaxes, and provides the ready to

add/edit templates for quick and easy operations. eSewa Mobile application provides

almost all service that an eSewa user can get via its web module. eSewa mobile

applications are changing the face of the money as we see today. With the growing

numbers of users every day, eSewa plans big for Nepali market, and international

market.

Database, Scripts and Security

This site uses SSL Certificate issued by Verisign. It can encrypt private and

confidential information securely before transmission. It uses a secure VPN

connection while doing transactions with partner banks accounts. All data are stored

in state-of-the-art data center. Each and every transactions are notified to the user via

email

Recommendations and Conclusion

eSewa has evolved as a dynamic and interactive platform for electronic payment. It

has changed the way of payment, gradually replacing the traditional way of payment.

Its success has been remarkably acknowledged by more people in urban areas where

there is a good infrastructure for internet and network services. It is expected that the

way eSewa is emerging will definitely serve the people ensuring more security,

reliability and efficiency in the coming days.

eSewa is the safer, easier method to pay online. With more than 250 merchants, and

increasing each day, it provides power to the customers.

It is secure as the Bank Account/Credit Card numbers are never exposed to the seller,

100% protection against any unauthorized payments sent from the users’ account and

every purchase confirmed with an email receipt. Similarly, it is also convenient

because it assures fast transactions through checkout with one account and uses the

concept of one password across hundreds of online shopping sites.

However, the challenges that eSewa must deal are mainly government regulations and

limited use of electronic payment in Nepal. In Nepal credit card payment has not yet

emerged. Although, few banks provide credit card facility, people do not use credit

card. It may be because credit card cannot be used for international purchase due to

government policies. Since, Nepal is receiving only country it has been difficult for

eSewa to establish itself internationally. On the other side, people prefer hand cash

than the digital cash.

Snapshots of eSewa