KATHMANDU: Digital payment systems are rapidly gaining popularity in Nepal.
Young people are increasingly opting for online transactions, making cash less common in daily life.
As digital technology continues to evolve, online payments are becoming more prevalent.
In Nepal, various platforms facilitate online payments, including mobile banking, digital wallets, Connect IPS, debit cards, credit cards, and internet banking.
According to Nepal Rastra Bank, the number of users on these platforms grew by 86,89,258 in the year spanning from June 2080 to 2081 BS.
With 36 digital platforms available in Nepal—comprising nine Payment Service Operators (PSOs) and 26 Payment Service Providers (PSPs)—choosing the right platform is essential for effective digital transactions.
Data indicates that payment volumes have risen across all platforms in 2081 compared to the previous year. This trend is also reflected in the increased number of ATM machines.
In June 2022, Nepal had 4,606 ATMs. By June 2023, this number had increased to 4,855, and by July 2024, it had further risen to 5,193.
Digital Wallets
Digital wallets offer a convenient, cashless method for storing and transferring money electronically via smartphones or computers.
Currently, there are 12 popular digital wallets in Nepal. The use of these wallets has surged, with the number of users reaching 2,34,64,000 by July 2024, an increase of 4,51,900 from the previous year.
In July 2023, the user base was 1,89,41,000, and by July 2024, the total transaction volume had reached Rs 3,13,00,00,000.
Mobile Banking
Mobile banking allows customers to perform financial transactions using smartphones or tablets through specialized apps provided by banks and financial institutions.
Available 24/7, mobile banking does have some transaction limits and restrictions. The number of mobile banking users grew from 2,36,39,989 in July 2023 to 2,46,48,846 by July 2024, representing an increase of 32,84,857 users.
Transactions through mobile banking amounted to Rs 37,39,78,00,000 as of July.
Internet Banking
Internet banking enables users to manage their accounts and perform transactions online through their personal devices.
Services include account balance inquiries, transaction statements, checkbook requests, and bill payments.
The number of internet banking users increased from over 1.6 million in July 2022 to 1,91,90,000 by July 2024.
This represents an increase of over 63,000 users from the previous year, with transactions totaling 1,77,00,00,000 rupees.
As digital payment options expand and evolve, Nepal’s financial landscape continues to embrace more technology-driven solutions, reflecting the growing preference for online transactions among its population.
Debit and Credit Cards
The usage of debit and credit cards is also on the rise in Nepal. As of July 2024, there are 289,000 credit cards in circulation and 1,28,93,000 debit cards in use.
In the year leading up to June 2081, transactions made with debit cards amounted to over 9.52 billion rupees. Meanwhile, credit card transactions totaled 2.73 crore rupees.
Connect IPS
Connect IPS is a platform that allows bank customers to perform various transactions directly from their accounts via mobile internet, simplifying payment processes.
There is no need for additional methods of payment; transactions are conducted directly through the Connect IPS system.
As of July of the last fiscal year, the number of Connect IPS users in Nepal has reached 12,76,886. Total transactions through Connect IPS have amounted to 66.65 billion rupees.
