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.

1. Kathmandu College of Management
E-COMMERCE PROJECT REPORT
eSewa
Ayush Man Tamrakar
Pallavi Pradhan
29th
May 2014
Bibushan Bista
Faculty
Kathmandu College of Management

2. 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

3. 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.

4. 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.

5. 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.

6. 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

7. 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

8. 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 e-commerce 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

9. 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

10. 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.

11. 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.

12. 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.

13. 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.

14. Snapshots of eSewa