Though both platforms named E-Sewa and FonePay are operated and controlled by the same company called F1 Soft, the purpose of these two applications is different.
Firstly you need to understand the concept of Payment Service Provider(PSP) and Payment Service Operators(PSO). Payment Service Operator(PSO) is the platform that acts as an intermediary to settle all the financial transactions of PSP who are using their network for the purpose of fund settlement and debit-credit routing related activities. PSO are platforms where Financial institutions such as banks, financial institutions, and payment service providers etc. can interlink for clearing and settlement of transactions.
Fonepay is a digital payment processor that connects consumers, banks and merchants in an interoperable network to facilitate mobile/digital payments. According to F1 Soft, It is Nepal’s first mobile payment network to be licensed by the central bank as a Payment Service Operator (PSO).
Fonepay can be considered as a payment gateway like ConnectIPS which helps in connecting banks, consumers and merchants for settlement of their payments. FonePay allows various modes of online payment like B2B, B2C, C2B, C2C possible with all in one platform. Majority of digital wallets used by Banks in Nepal rely on fonepay as F1 Soft is the dominant player in banking and online financial settlements in Nepal for a long time. Recently, we can see the emergence of other platforms like ConnectIPS.
On the other hand, A payment service provider is a third-party company that assists businesses to accept a wide range of online payment methods, such as online banking, credit cards, debit cards, e-wallets, cash cards, and more. They’re peer-to-peer platforms that ensure customers’ transactions make it from point A to point B, safely and securely.Renowned payment apps like Khalti and Esewa are PSPs.