Debit Card Users Reach 1.36 Crore: Nepal’s Payment Landscape Under Transition

Published on September 23, 2025

As of Saun End, 2082 (Mid-August 2025), Nepal’s banking sector reports 1.36 crore debit card users, reflecting a major shift in how people transact and access financial services. Out of this total, commercial banks (Class “A”) dominate with 1.23 crore debit cards, development banks (Class “B”) account for 12.3 lakh, and finance companies (Class “C”) add around 76,000. This expansion demonstrates that debit cards remain a vital bridge between traditional banking and digital payments in Nepal’s evolving financial ecosystem.

From an inclusion and convenience perspective, debit cards have brought millions of customers into the formal payment system. They provide direct access to funds in deposit accounts, enabling cash withdrawals at 5,264 ATMs nationwide, and facilitating digital transactions in point-of-sale (POS) machines and online platforms. The strong growth of debit cards highlights increasing consumer trust in cashless modes of payment, particularly for retail spending, travel, and small-scale e-commerce.

However, this transition also underlines Nepal’s dual reliance on both cash and digital systems. Despite the large number of debit card users, cash withdrawals remain the dominant use case, as many consumers still prefer physical currency for daily transactions. Compared to the 2.79 crore mobile banking users, debit cards represent a more traditional, hardware-based form of digital finance, with slower adaptability to rapid innovations such as QR codes, wallets, and instant payment apps.

For banks, the growing debit card base expands customer engagement but comes with challenges of infrastructure maintenance, fraud prevention, and cybersecurity. Enhancing transaction security and expanding digital merchant acceptance points will be key to shifting customers from ATM withdrawals to cashless retail spending.

At the macro level, the rise in debit card users signals a financial sector in transition—from cash-heavy practices toward diversified digital payment ecosystems. While mobile banking and QR payments are the fastest-growing segments, debit cards continue to play a foundational role, bridging the gap between traditional banking customers and the digital future.

Nepal’s Export Boom: Soybean Oil Leads, But Fragile Structure Raises Red Flags

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Nepal’s Import Dependence Deepens: Petroleum, Oils, and Machinery Dominate Trade

Nepal’s Import Dependence Deepens: Petroleum, Oils, and Machinery Dominate Trade Kathmandu – Nepal’s trade data for the first two months of fiscal year 2082/83 (July–September 2025) reveals an import-heavy economy increasingly dependent on petroleum, edible oils, machinery, and vehicles. According to the Department of Customs, total imports stood at Rs. 305.15 billion, while exports were just Rs. 47.31 billion, leaving a massive trade deficit of Rs. 257.83 billion in only two months.

Margin Trading in Limbo for Two Decades: Policy Ambiguity and Technical Gaps Hold Back Reform

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Savings vs. Fixed Deposit Returns: Are Nepali Households Choosing Long-Term Lock-ins?

Nepali households are increasingly choosing fixed deposits (48% of total) over savings deposits (37%), lured by higher returns. While this ensures security and stable bank funding, it reduces household liquidity and raises banks’ funding costs, reflecting both cautious saver behavior and limited investment alternatives.

Credit Rates at 7.76%: Borrowing Costs and Their Impact on Businesses

Nepal’s average lending rate of 7.76% provides businesses with relatively affordable credit, encouraging investment and growth. Yet, for SMEs and struggling sectors, costs remain a challenge. Rising defaults highlight the need for caution, making the balancing act between supporting borrowers and ensuring bank stability critical.

6,526 Bank Branches Nationwide: Physical Expansion vs. Digital Shift

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Credit Cards Still Low at 3.18 Lakh: Why Nepal Lags in Credit Penetration

Nepal’s credit card users stand at just 3.18 lakh, far behind debit and mobile banking adoption. Risk aversion, cultural preferences, limited merchant acceptance, and weak financial literacy hinder growth. While this protects households from debt risks, it also shows Nepal’s untapped potential in consumer credit markets.