Introduction

In recent years, Bhutan has made significant strides in the development and adoption of digital payment systems. The digital payment system consists of fund transfer through mobile banking, Bhutan QR, payment gateway, internet banking, e-Wallet, Bhutan Inter-Bank Real Time Fund Transfer (BIRT) and point of sale (PoS).  The digital payment, both volume and value has exhibited consistent growth over the years as shown above. Mobile banking has dominated digital payment both in terms of volume and value. 

The international payment gateways like Transfi facilitate merchants to sell their products and services online. With this, Bhutanese businesses can sell their products and accept payments online. Products such as airline tickets, hotel rooms, tour packages can be sold. There is a notable increase in transaction volume in the past few years. This indicates a significant rise in the number of transactions processed through the international payment gateway during this period. 

Widely used local payment systems of Bhutan

Here listed are the most widely used payment systems of Bhutan. With the economy transforming towards digitization, it's important to be informed with the new age payment methods while also being informed by where the evolving systems are coming from and where the roots of the economy lie;

1. Mobile Banking

With the launching of the first mobile banking application by Bank of Bhutan Limited (BOBL) on May 15, 2015, mobile banking has emerged as a powerful tool in promoting financial inclusion in Bhutan. The interbank fund transfer system is managed by the Royal Monetary Authority of Bhutan by interconnecting all the member banks.

In continuous efforts to innovate retail payment systems, the RMA in partnership with the member banks implemented payment overlay services for real-time account validation and health check of a beneficiary bank before confirming the payments via Mobile and QR code. With these new services, a customer will now be able to see the beneficiary account name if the beneficiary bank system is up and running.

2. Bhutan QR Code

With the growing popularity of QR Code payments, RMA, in collaboration with the financial institutions, has enabled payments using Bhutan Quick Response Code. Bhutan QR Code payment is one of the smart digital banking initiatives. One primary advantage of using National QR codes for merchant payments in emerging markets is their accessibility.

Bhutan QR Code is a unique platform to facilitate low-cost interoperability of QR Code payments whereby the customers can make payments by scanning QR codes of different banks and have the amounts transferred directly from their accounts without the need of additional hardware. The QR Code interoperability project aims to encourage digital payments and enhance financial inclusion, particularly amid the challenges posed by the Covid-19 pandemic. Presently, all the commercial banks in Bhutan have successfully deployed the interoperable Bhutan QR Code payments via the RMA’s common QR infrastructure.

3. ATM (Automated Teller Machine)

ATM stands for Automated Teller Machine. It's a device that allows people to perform various banking transactions without the need for a bank teller. These transactions include withdrawing cash, checking an account balance, depositing money, transferring funds between accounts at any time.

4. PoS (Point of Sale)

It is a payment service where merchants use to make sales in person. Through this service, you become a part of the completely new concept of a cashless society in the kingdom. With just a swipe of your card (any card issued by a Bhutanese bank, or any VISA branded card) to make the payments online in real-time

5. Internet Banking

Internet banking is a banking service provided by the financial institutions that allows customers to conduct various financial transactions over the internet and There are two types of internet banking services:

• Retail banking
• Corporate banking

6. e-Wallets

With the widespread use of smartphones, e-wallets are becoming accessible to a broader segment of the population, allowing more people to participate in the digital economy. e-Wallets are virtual wallets through which users can recharge phone numbers, make utility payments, transfer funds and store money for future online/offline transactions. Its main objective is to achieve greater financial inclusion, promote cashless transactions and to bring every citizen into the financial ecosystem.

As the economy progresses, Bhutanese have started adopting to the coming of age payment solutions using them locally and internationally. Transfi, as a local payment platform, is gaining high traction in recent years providing end to end solutions for all payment needs in the region. 

Choosing the best payment platform in Bhutan?

While choosing a payment platform in Bhutan, one needs to make strategic choices depending on your business and operational needs. From providing smooth financial transactions to abiding by security laws, each small and big decision will directly affect your business in the market and derive customer satisfaction. Below are the considerations you must follow through when choosing a payment gateway platform for your business. 

1. Currency handling capabilities 

The chosen payment gateway must be able to assess Australian dollar for local transactions and currency exchange ease for some sort of facilitation for international transactions. This dual capability would allow your business to expand and reach customers all across the world. This can be a very good way into cross border transactions. 

2. Integration with local payment systems

The integration of  the gateways with local banks and payment methods and systems dictates its reliability and stand point in the market locally. Direct collaborations with financial institutions speed up the transactions in the widely accepted secure manner.

3. Verify regulatory compliances

The ability of the payment gateway to operate within the regulations and standards of Australian financial systems makes it a legal and strong contender in the market. It also makes it trustworthy across the globe if local and global compliances are drawn fully for the gateway. 

4. Compare fee structures of different providers

The payment gateway would provide a full circle satisfaction if it comes with cost effectiveness along with all the other features. A gateway the offers straightforward fee schedules and subscription models for convenience helps in planning, budgeting and taking strong financial decisions for your business when you are to manage financial costs as well as operational costs together. 

5. Prioritises customer support

When it comes to digital technologies and growing customer demands, it comes with a high requirement of constant customer support for using these features smoothly and making the most out of the services in the right ways. One must look for gateways which provide prompt assistance and the means to resolve payment issues easily. 

6. Integration possibilities 

A gateway that offers hassle free setup and easy plugin into your own setup of websites, platforms or existing business systems is the right choice of a payment gateway. It should require minimal technical indulgence by the business to set up the gateway and quickly have it running for the business smoothly. 

Look at no other solution when it comes to running your business smoothly on the side of finances -  managing transactions, secure flow of money, customer support, it’s all covered with the cost effective solutions of Transfi. 

The perfect payment solution with TransFi

Selecting the right payment gateway that consolidates billing, payments and subscription, security, and more is key to the success for your business. Transfi provides the following advantages over other solutions and gives valuable benefits to its users: 

1. Billing features: Transfi provides tools to support various billing methods, offers multiple payment options, provides robust fraud protection and includes robust subscription management.

2. Costs: Transfi comes with no transaction fees, minimal setup costs, and additional charges from various processors to fit the best fit for your budget.

3. Security and compliance: Transfi as a payment processor implements strong security and fraud prevention measures, complies with industry standards to protect customer data and collects taxes from customers correctly.

4. Customizability: The ability to customize functionalities and integrate with third-party software can help create a more seamless experience using Transfi.

5. Scalability: Transfi ensures to accommodate growing transaction volumes and expansion into new markets.

6. Localisation: for cross border payments, Transfi supports multiple languages and currencies.

7. Reliability: Transfi provides robust customer support and transparency in each and every step ensuring reliable means and legal compliances. 

Transfi is a cross-border infrastructure business focussed on enabling global companies to make payments in, out, and across the world. Transfi is one of the first ones to bring Virtual Accounts, combined with a global foreign exchange network, to countries across the globe providing flexibility of payment methods, currencies and stablecoins. 

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Read more: Should you use multiple payment service providers?

Conclusion

Digital payments have become a vital part of the financial landscape in Bhutan. Whether you are looking for low fees and costs, multiple method payment support, top notch security features or best customer assistance, we have got you covered with Transfi which would fit all your payment needs in one platform. By considering the factors mentioned above and keeping yourself updated with the trends and developments in the market, make an informed decision for your business as you move towards growth and expansion. 

Frequently asked questions (FAQs)

1. What are the key considerations when choosing a digital payment platform?

Key considerations when choosing a hosted payment page provider include their level of PCI compliance, the payment methods they accept, the customization options they offer, and the ease of integrating their service into your website.

2. Why is it important to choose the right payment platform in Bhutan? 

It is very crucial to select the right payment platform for businesses and transactions of all sizes and types as it ensures seamless money exchange, brings in customer trust, supports a variety of payment methods, follows legal guidelines and compliances pertaining to international security standards.

3. What are the factors to consider when choosing a Payment platform in Bhutan? 

• Transaction fee
• Security and compliance
• Customer support
• Currency and payment diversity
• Integration options

4. What are the most widely used payment systems in Bhutan? 

• Mobile Banking
• Bhutan QR
• ATM (Automated Teller Machine)
• PoS (Point of Sale)
• Internet banking
• e-Wallets

5. Why is Transfi the best payment solution in Bhutan?

Transfi, as a local payment platform, is gaining high traction in recent years providing end to end solutions for all payment needs in the region. Transfi is one of the first ones to bring Virtual Accounts, combined with a global foreign exchange network, to countries across the globe providing flexibility of payment methods, currencies and stablecoins.