Shanker dev campus

(Tribhuvan University)

A REPORT
ON
ONLINE SHOPPING IN NEPAL:
Khalti

Project report
On
E-Commerce

In partial fulfillment of the requirements

For the Bachelor’s Degree in Business
Administration

Submitted by:
Byanjana Khanal (17310/16)

Submitted to:
Roshan Bhusal

Date: october, 2019

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ABSTRACT

This report is based on the brief information on online shopping with the objectives
and importance. This report, in an introductory phase encompasses a short description
on online shopping in Nepal then highlights about website; khalti.com along with its
history, services and objectives. The project work sets light on prospects of khalti.com
which contains of background of Khalti, short history of Khalti infrastructure it
employs for quicker customer service, delivery process, payment process, and
business model it follows. Khalti.com as a popular online shopping site is also being
exposed to growing competition and its likely challenges and threats on Khalti’s
existence. Thus, this report attempts to explain the major plans and strategies
khalti.com adopts to maintain their position in the market, retain their customers,
continuous effort for quality improvement. Digital Wallet is a new way to send and
receive money, pay bills and provides many more services. The rise in technology has
brought most of the positive changes in Nepal and with the introduction of digital
wallet for cashless payment, it has taken a step forward in making of Digital Nepal. p.
The concept of digital/mobile wallet started in 2009 after the launch of eSewa by F1
Soft International. The introduction of eSewa revolutionized the concept of digital
payment in Nepal. Since then Nepal has seen different digital payment service
providers. Since eSewa, other payment systems like Khalti, IME Pay, QPay, iPay etc.
have launched their services. Khalti has recently launched payment service provider
of Nepal. Started in 2017, it has become one of the biggest rivals to eSewa, the oldest
payment service provider.

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SUPERVISOR’S RECOMMENDATION

This is to certify that Byanjana Khanal has completed this dissertation work entitled
“Report on online shopping in Nepal: khalti.com”as a partial fulfillment of
requirement for the course E-commerce under our supervision.The report has been
presented in the prescribed format of department of IT.This report is forwarded for
evaluation.

……………………………….

Roshan Bhusal

(Faculty of E-commerce)

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ACKNOWLEDGEMENTS

This project is assigned to us as a part of our practical examination under E-

Commerce by Tribhuvan University, aimed at giving practical knowledge of working
environment. Apart from the University Examination, this project is almost like on the
job training. So the knowledge we had gained during this fieldwork study is very
important for us.

The satisfaction that accompanies that successful completion of any task would be
incomplete without the mention of people whose ceaseless cooperation made it
possible, whose guidance and encouragement crown all efforts with success. We are
grateful to our Teacher Mr.Roshan Bhusal for the guidance, inspiration and
constructive suggestions that was helpful for us while preparing this project. I have
successfully competed this Report and time spent with him had been a grate learning
experience. I think him constant encouragement, warm responses and for filling every
gap with valuable ideas has made this Report successful. We owe our depth of
gratitude to all other people who directly and indirectly helped us in completion of
this report.

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TABLE OF CONTENT
ABSTRACT .................................................................................................................... i

SUPERVISOR’S RECOMMENDATION ....................................................................ii

ACKNOWLEDGEMENTS ......................................................................................... iii

TABLE OF CONTENT ................................................................................................ iv

Chapter One……………………………………………………………………………1

INTRODUCTION ......................................................................................................... 1

1.1 Background of the study ...................................................................................... 1

Chapter Two................................................................................................................... 2

ANALYSIS .................................................................................................................... 2

2.1 Online Opportunities……………………………………………………………2

2.2 Business Model .................................................................................................... 2

2.2.1 B2B business model: ..................................................................................... 2

2.2.2 B2C business model: ..................................................................................... 2

2.3 Online Opportunities ............................................................................................ 3

2.4 Marketing Strategies ............................................................................................ 4

2.5 Payment Method………………………………………………………………..4

Chapter Three................................................................................................................. 6

PROBLEMS AND SOLUTIONS……………………………………………………6

3.1 Epayment problems…………………………………………………………… .6

3.2 Solutions to Problems…………………………………………………………...7

3.3 Swot analysis……………………………………………………………………9

Chapter Four…………………………………………………………………………..9

HOMEPAGE ............................................................................................................... 10

4.1 Homepage........................................................................................................... 10

4.2 Items in Homepage ............................................................................................ 10

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Chapter Five ................................................................................................................. 10

CONCLUSION………………………………………………………………………11

REFERENCE………………………………………………………………………..12

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Chapter One
INTRODUCTION

1.1 Background of the study

Khalti is an online payment or money transfer site that can be used to do different
transactions through online at Bakhundole,Lalitpur is selected for the project and its
entire data management system and is viewed while carrying out the
project.Khalti offers a wide range of services of true quality using the latest
technology.Khalti is the predominant ecommerce venture in Nepal with footprints in
many ecommerce sectors such as shopping, remittance, payment gateway, ebooks,
emovies, emusic, games, business directory, online news, etc. Khalti is a new
generation payment gateway, digital wallet and API provider system for various
online services for Nepal.

Khalti is a digital wallet for instant, secure and hassle-free online payments in Nepal.
It was officially launched in Nepal on 26 January 2017. It is a digital wallet payment
portal which allows us to make online as well as offline payments to various
merchant, transfer funds to various banks, payment of internet service bills, payment
of credit cards bills and many more. Digital Wallet is a new way of the transaction.
We soon will be forgetting that how our currency note looks like. Digital Wallet has
become a new way to send and receive money, pay bills, and provided many more
services. It provides transparent, safe and convenient transactions on just a single tap.
It is an digital wallet which is available in the web and mobile devices. We can use
Khalti through internet as well as smart phones. We can have transaction in khalti
through application of khalti or through visiting the website of khalti. The objective of
khalti is to allow payment of bills to various merchants or companies from one place
to another which saves our time of travelling to each company and wait on long lines
to pay our bills. The payment is done in secured way without exposing credit card
number to the company. It is 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. All khalti services are
free to use. Khalti services are accessible via the SMS system.

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Chapter Two
ANALYSIS

2.1 Online Opportunities

An online job fair, also known as virtual job fair or electronic job fair. Running an
online payment system Khalti opportunities are as follows:

Pay Electricity Bills (Bijuli bills) without visiting NEA counters.

 Mobile Balance Top-up that includes NTC, Ncell, and Smart Cell.
 Airline Tickets of most of the domestic airlines of the country.
 Pay bills of ISPs and Dish Home.
 Buy movie tickets of most of the multiplex around Kathmandu valley.
 Pay water bill which is a lot more convenient to visit the khanepani.
 office and staying in line.

2.2 Business Model

Business model is simply a plan for the successful operation of a business, identifying
sources of revenue, the intended customer base, products, and details of financing.

Khalti involves two business models. They are B2B and B2C.

2.2.1 B2B business model:

This model can be defined as doing business electronically or business that is

conducted over the internet. It is the most common business model associated with the
buying and selling information, product or services between or among the business
through the internet. While transacting through khlati both the parties can be business
parties where one party pays to another and vice-versa. Hence, it is called B2B
transaction. Khalti provides the safe gateway to pay online.

2.2.2 B2C business model:

Here, business and consumers interact electronically or digitally in some ways. B2C
covers those e-commerce websites and transactions through which organizations sell
goods and services to consumers over the internet. In a typically B2C model, the flow
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of information between business and consumers is through the medium of internet.
The same principle is adopted by khalti.

2.3 Online Opportunities

Customer Convenience – A merchant account can lead to happy (and returning)

cusomers simply because it gives them the flexibility to make payment in the
simplest way using Khalti account.

Avoid Bad Checks – By using merchant account services and accepting electronic
payments, any business can avoid the hassle and costs associated with bounced
checks.

Increase Sales – A variety of studies and research over the years have found that
customers spend more when given the option to use electronic payments over cash.

Online Presence – Business can be seen on khalti mobile app, Website, Google
Maps, and different social media platform.

Cross Promotion – Increase your footfall and revenue by leveraging cross-selling

opportunities.

Online Promotion – Get promoted through Social media channel, Emails, SMS,
Google, and YouTube.

Customer Relationship – Enhance the customer relationship by offering them more

convenience.

Lead Generation – Enroll new customer on Khalti and make them payment to the
merchant.

Deal and Discount – Get great Deal and Discount from Khalti.

Customer Services – Get Khalti 24*7 customer service support.

2.4 Marketing Strategies

A marketing strategy is all of a company’s marketing goals and objectives combined

into a single comprehensive plan. Business executives draw a successful marketing
strategy from market research. They also focus on the right product mix so that they

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can get the most profit. Marketing strategies are long-term, forward-looking
approaches to planning. Their fundamental goal is to achieve a competitive
advantage. To warm up the people Khalti app was formally released in the market
about teaser on how physical wallet and hard cash are going obsolete. They make the
video viral through video they received very well responses and launched the App.

2.5Methods of Payment

There are several methods to load fund in khalti digital wallet. Some of the major
ways includes loading fund through e-banking, khalti via card, counter deposits and
many other ways. It has three simple steps to load fund i.e. Registration, loading fund
and payment for the goods & services.

a) E-Banking:

The khalti users can load fund through e-banking by filling up the form in partner
banks who have given the services. The figure below shows the partner bank that
have facilitated for e-banking to khalti.

b) Khalti via Card:

The khalti user can receive khalti via card after filling up the form in card providing
partner banks. The partner banks providing khalti are as follows:

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c) Counter deposit:

The khalti user can easily transfer fund to their khalti account by filling up the form in
the concerened bank. The amount to be uploaded in khalti should be mentioned
clearly while filling up the form. Here are the partner banks that provide counter
deposit service:

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Chapter Three
PROBLEMS AND SOLUTIONS

3.1s E-payment Problems:

1) Lack of Usability:

Khalti requires large amount of information from end users or make transactions more
difficult by using complex elaborated websites interfaces. For example, credit card
payments through a website are not easiest way to pay as this system requires large
amount of personal data and contact details in web form.

2) Lack of Security:

Online payment systems like khalti are an easy target for stealing money and personal
information. Customers have to provide credit card and payment account details and
other personal information online. This data is sometimes transmitted in an unsecured
way

3) Lack of Awareness:

Making online payment is not an easy task. Even educated people also face problems
in making online payments. Therefore, they always prefer traditional way of shopping
instead of online shopping. Sometimes there is a technical problem in server
customers tried to do online payments but they fails to do. As a result they avoid it.

4) Online Payments are not Feasible in Rural Areas:

The population of rural areas is not very literate and they are also not able to operate
computers. As they are unaware about technological innovations, they are not
interested in online payments like khalti. So the online payment systems like khalti
are not feasible for villagers.

5) Additional cost and effort:

Khalti is expensive because it needs extra transfer cost, service charge, etc and this
mode of payment also needs internet access which also increases cost and effort.

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3.2 Solutions to the Problems

1) Easy and secure way of transaction for the customers should be facilitated by the
khalti for the consumer loyalty.
2) Advertisement of khalti should be carried out in both the digital as well as print
medias like newspaper, television, magazines, etc.
3) Campaign should be launched in various parts of rural and urban areas for its
promotion .
4) Even many potential users are behind the information regarding such payment
gateway. Thus, it should be involved in finding out the potential customers.
5) Since it has no any branches and only has head office, it should open its branch in
central or highly populated areas such as New Baneshwor, New road, Koteshwor
and also in potential places outside of the valley.

3.3 SWOT Analysis

Strengths  Encrypt private and confidential information securely.

 Highly skilled and competent workforce.
 Highly secured data.
 Network through worldwide.

Weakness  Khalti has limited reach. It operates within Nepal only.

 Need highly skilled and competent employees with
better knowledge of computer.
 Lack of mass media techniques.
 Not useful for large transactions.
 People are not aware about the use of khalti and its
advantages.
Opportunities  Growing demand.
 Innovation of new technology.
 Accepted in more markets.
Threats  Hackers may steal card number.
 Has to install costly software.
 Competitive market.

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Chapter Four
HOMEPAGE

4.1 Homepage

4.2 Items in Homepage

The above is the home page of khalti.com. When we type www.khalti.com.np the
above page gets opened. There are several tabs on the head of the home page. They
are listed as below:

1. Home:The above shown figure is the home page of khalti.com.

2. About Us: It consists of the detail information about the organization and its
history.
3. Services:This category contains the information about the services provided by
the khalti.com.
4. Load Fund:It includes the information about the methods of loading fund in the
khalti account from partner banks.
5. Payment Gateway:It is the method for accepting funds by the business
organization for its transactions with the consumer.

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6. Blog:It includes the miscellaneous activities carried out by khalti in different time
and places.

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Chapter Five
CONCLUSION

Khalti has involved as a dynamic and interactive platform for electronic payment. It
has changed the way of payment, gradually replacing the traditional way of payment.
It is expected that the way Khalti is emerging will definitely serve the people ensuring
more reliability and efficiency in the coming days.

Khalti is easier method to pay online With more merchants increasing each day, it
provides power to the customers.

It is secure as the account/ credit card numbers are never exposed to the seller.
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 khalti 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
khalti to establish itself internationally. On the other side, people refer hand cash than
the digital cash.

Various Schemes offered by the company in various areas has contributed to maintain
the good image among the public. The computerized method of analysis of data and
information provided on the visit of organization hasalso contributed for carrying out
the project.

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REFERENCES

 Khalti.com (n.d.). About information of khalti. Retrieved from information of

khalti.com: http://bossnepal.com/khalti-com/
 Agrawal, G.R. (2016). Fundamentals of Marketing. Kathmandu: M.K.
Publishers
 Khalti.com (n.d.). Ways to load fund in khalti. Retrieved from partner banks of
khalti.com:https://khalti.com/load-fund/
 https://medium.com/@manish_modi/khalti-the-tale-of-nepals-digitalwallet-
f6db0621cf11
 https://chautaari.com/e-commerce-nepal