Today in this article let us have a look at the status of credit/debit card Network in Nepal. You might have noticed that there are various symbols in your ATM Credit/Debit Card like VISA, Master Card, SCT, American Express, UnionPay and so on. These are the credit card Networks. And you might wonder why do we need these networks. right? Consider a situation in which you have a bank account in one Bank (let's suppose its Nabil Bank) and maybe you want to withdraw money from another bank or may be even from another country. In these situation these networks acts as a means of financial communication between each others.
The following figure shows the process of how the credit/debit card network works.
Fig: Working Process Of Credit/Debit Card Network
History
According to Wikipedia, The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Later Charge coins and other similar items were used from the late 19th century to the 1930s. These charge coins were used by customers in department stores, hotels and so on. In September 1958, Bank Of America launched BankAmericard in Fresno, California, which was the first recognizable modern credit card. It was then licenced to other banks around the U.S and then around the world. Then in 1976, all BankAmericard United themselves under the common brand VISA. In 1966, the ancestor of MasterCard was born when a group of banks established MasterCharge to compete with BankAmericard. In 1966, Barclaycard in the United Kingdom first launched the credit card outside the united states.
If we look at the credit card in the context of nepal. The first Credit Card in Nepal was introduced by Nabil Bank in 1990 and the first ATM was introduced by the Himalayan Bank in 1995. And Today according to Nepal Rastra Bank there are 68,19,602 debit cards issued as of December 2019.
List of Credit Or Debit Card Network In Nepal
Now let us have a look at the some of the Credit/Debit Card Network In Nepal.
1)Visa:
Visa is the most popular credit card network in Nepal. It is used by almost every A Level Bank in Nepal. Mostly Visa Network Are of 2 Types in the Context of Nepal. Domestic Visa Card and International Visa Card. With Domestic Visa Card you can withdraw money from every ATM in Nepal and also maybe in India if that ATM has VISA Network. However, Domestic VISA Card cannot be used to withdraw money from other countries. On the other hand with International VISA Card you can withdraw money from any corner of the world using VISA Network. VISA is a American Multinational financial service cooperation in California,U.S. With Stock Price Of $181.76 As of February 28, 2020.
2)Master Card:
Master Card is another popular Credit Card Network In Nepal. It is a American Multinational financial service corporation headquarter in New York, United States. As of February 28, 2020 It has a Stock Price Of $290.25.
3)SCT:
SCT(Smart Choice Technologies Private Limited) Is Another Popular Debit Card Network In Nepal. It is a local brand Card and is valid mainly for domestic usage. It is Located in Baluwatar, Kathmandu.
4)American Express:
American Express(Amex) is Another Credit Card Network In Nepal. It is an American multinational financial service corporation headquartered in New York City. It was founded in 1850 and has a stock price of $113.87 As of March 2,2020.
5)Union Pay:
Union Pay is Another Financial Network In Nepal. Union Pay is a Chinese financial service cooperation headquartered in Shanghai, China. It was founded in March 26,2002.
Thankyou for reading this article. Please do comment what you think about credit card Network in Nepal, In the comment section below.
References:
1) https://blog.khalti.com/fintech-trends/brief-history-of-banking-in-nepal/
2) https://en.wikipedia.org/wiki/Credit_card#History
3) https://www.creditkarma.com/credit-cards/i/credit-card-networks/
