Jagdish Khadka: eSewa made digital payments a reality for all

Jagdish Khadka is the Chief Executive Officer (CEO) of eSewa. He has an experience of more than a decade in the digital banking field. Shreya Shrestha of ApEx talked with him regarding eSewa as a key player in Nepal’s digital landscape and its journey over the years. Excerpts:

eSewa has been a key player in Nepal’s digital transformation. How do you assess its impact on financial inclusion over the years?

Over the years, eSewa’s most significant achievement has been building trust among users by demonstrating that digital payment is not only possible but also secure, reliable, and convenient. We have focused on raising awareness and promoting digital literacy, which has made digital payments accessible and practical for everyone. To reach this stage, our efforts as a company have been pivotal. However, inclusivity has been a core principle—ensuring that our services extend beyond urban areas to every corner of the country. We are proud to be present in all 753 local bodies through our network of agents. These agents actively advocate for digital payments, addressing questions of trustworthiness and security while showcasing the convenience of mobile transactions. As a result, we are now witnessing payments being made seamlessly across the country. This reflects the trust and credibility we've built, proving that mobile-based digital payments are a reality for all, bridging gaps and empowering users nationwide.

Given Nepal’s economic landscape, what challenges did eSewa face in encouraging people to adopt digital payments, and how were these addressed?

First and foremost, for anyone providing a service, it is essential to embrace digitization. When it comes to payments, preparation is key—understanding what you’re selling or paying for is crucial. This was our biggest challenge in the beginning. Initially, we manually handled processes, such as scratching recharge cards, recording numbers in Excel, and uploading them later. That’s how it all started. Over time, merchants and businesses began recognizing the importance of digitization, leading to integration and gradual adoption of digital tools. This shift marked the beginning of a more organized and civilized approach to transactions. Alongside this, we focused on raising awareness about the use of digital platforms for merchants, which presented its own challenges. To address these challenges, we implemented strategies such as cashback offers, roadshows, campaigns, gifts, incentives, and mobilizing our agents and field staff. Our efforts extended to institutional collaborations, local bodies, and media partnerships, which played a significant role in disseminating our message. These initiatives not only raised awareness but also encouraged merchants to enhance their offerings, making digitalization more appealing and practical. In summary, awareness, service digitization, and building trust were our three biggest challenges. Despite these hurdles, we overcame them, and today, we stand here to the progress that can be achieved with persistence and innovation.

How does eSewa contribute to sustainable economic practices in Nepal while supporting efforts to reduce carbon emissions and promote eco-friendly financial solutions?

In the context of sustainability, eSewa embodies a paperless and cashless service model, significantly contributing to reducing carbon emissions and promoting efficient business practices. By transitioning from traditional methods to digital solutions, eSewa has enhanced business efficiency and environmental sustainability. For instance, tasks that previously required manual oversight, such as cash handling or bill clearance, are now seamlessly managed through digital devices, eliminating the need for physical presence and paper-based transactions. This shift has improved operational efficiency, financial processes, and capital mobilization. Additionally, the convenience of real-time money transfers and digital billing reduces the reliance on physical resources, such as paper and transportation, which indirectly lowers energy consumption and carbon emissions. For example, previously, paying an electricity bill required individuals to travel to offices, consuming time, energy, and fuel. With eSewa, such tasks are now completed digitally, reducing both the carbon footprint and the effort involved. Overall, eSewa not only drives business and operational sustainability but also aligns with environmental goals by promoting digital transformation. Its inclusive platform addresses diverse needs, offering sustainable solutions for businesses and individuals alike.

Could you elaborate on eSewa’s most groundbreaking innovation to date?

One of the most groundbreaking innovations introduced by eSewa is the top-up feature, which has revolutionized convenience in digital platforms. Additionally, we have continuously expanded our range of services, building trust among users by enabling seamless payments anytime, from anywhere. Our focus has been on providing an easy and smooth user experience, ensuring that customers feel confident and comfortable using our platform. Beyond this, we have also made significant strides in improving internal technologies and enhancing our service delivery methods to meet evolving user needs effectively. These efforts collectively reflect our commitment to innovation and customer satisfaction.

As digital payment systems evolve, how is eSewa leveraging technology to improve its services and user experience?

We can describe this era as the AI breakthrough period, where we have been actively integrating cutting-edge technologies. One key innovation is EVA, our AI-powered chatbot, which leverages machine learning to deliver intelligent and efficient customer interactions. Additionally, we have enhanced customer service by introducing personalized solutions, where AI and machine integration play a critical role in driving efficiency and improving user experience. By embracing these impactful advancements, we are creating a significant positive impact on our services and redefining customer engagement.

How does eSewa ensure inclusivity, particularly for rural populations and marginalized groups, in its services?

It is remarkable to note that a significant portion of our users comes from rural and marginalized communities. This is likely because, for many, our service is one of the few accessible options available. We’ve designed eSewa to be inclusive and user-friendly, recognizing that mobile phones are now a common tool for transactions, even in remote areas. To cater to diverse users, our app is localized with a Nepali language option, making it accessible to those with limited literacy. In addition, we operate 13 branches across the country to extend our services further, build trust, and educate users about digitization. These branches are instrumental in raising awareness and supporting users in embracing digital financial solutions. We have also prioritized inclusivity for merchants and specific groups. Over time, we’ve introduced various incentives tailored to female entrepreneurs, students, and marginalized communities. To ensure greater impact, we’ve conducted region-specific campaigns and programs in local languages, often collaborating with local influencers to connect more deeply with these communities. Through these efforts, we continue to foster inclusivity and accessibility in Nepal’s digital landscape.

Could you share examples of partnerships that have significantly boosted eSewa’s impact?

In our company culture, the ‘tiger on a cliff’ embodies our core values, where the C in cliff stands for collaboration. Collaboration is at the heart of everything we do at eSewa. Our long journey of success would not have been possible without the partnerships we’ve cultivated along the way. Our agent network has been pivotal in this growth. Initially, 10 percent of users were brought in by the company and 90 percent by agents, but over time, this dynamic reversed, thanks to the dedication of our agents. They played a crucial role in raising awareness about eSewa, introducing both users and merchants to our services, and helping establish our brand in the market. Beyond agents, we have built strong partnerships with local governments, organizations, and development agencies like DFIs. Together, we have successfully implemented numerous impactful projects. These collaborations have allowed us to educate, motivate, and create meaningful change within the digital financial ecosystem. By working hand in hand with these partners, we have not only expanded our reach but also strengthened the digital payment infrastructure, ensuring eSewa continues to empower individuals and communities across Nepal.

With rapid advancements in digital finance globally, where do you see eSewa in the next five to ten years?

At the core of eSewa lies our commitment to payments, around which we aim to integrate a wide range of services such as insurance, finance, savings, and investments. These offerings are designed to address the evolving lifestyles and financial needs of people in a holistic manner. Looking ahead, we envision incorporating cutting-edge AI innovations to enhance our services, making them smarter, more intuitive, and user-friendly. Our aspiration is to become an exemplary company that not only serves Nepalis but also becomes the go-to digital payment solution for anyone visiting Nepal. We strive to make eSewa a symbol of trust, convenience, and innovation in the digital financial landscape.