Electronic Payment Transactions Surge in Nepal: Mobile Banking and Wallets Lead the Way
Author
Dipesh Ghimire
Nepal has witnessed a significant surge in electronic payment transactions, reflecting the growing adoption of digital financial services. According to the latest data from Nepal Rastra Bank, electronic payments in the mid-month period of December-January 2024/25 have increased substantially. Among the various payment methods, mobile banking, digital wallets, QR-based payments, and debit cards have recorded the highest number of transactions.
Mobile Banking and Digital Wallets Dominate
Mobile banking continues to be the most widely used digital payment method, with transactions exceeding 48.9 millionin just one month. Similarly, digital wallets recorded an impressive 32.2 million transactions, reinforcing their role as a preferred cashless payment option in Nepal. The increasing penetration of smartphones and user-friendly digital banking apps have played a crucial role in this growth.
QR-Based Payments Gaining Popularity
QR-based payment systems are becoming increasingly popular among both small and large businesses. The latest figures show that 24.5 million transactions were completed through QR payments in December-January. This surge indicates a strong shift towards a cashless economy, where even small retailers and service providers are integrating digital payment solutions.
Debit Cards and ATM Withdrawals Remain Steady
Debit card usage remains significant, with 11.1 million transactions recorded during the period. Likewise, ATM cash withdrawals stood at 10.3 million, indicating that while digital transactions are growing, cash usage is still prevalent among Nepali consumers.
Other Electronic Payment Methods
Internet Banking: 378,545 transactions
Credit Cards: 269,168 transactions
Prepaid Cards: 130,154 transactions
E-commerce Transactions: 167,333 transactions
Cross-border QR Payments: 89,186 transactions
What’s Driving This Growth?
Several factors have contributed to the rapid adoption of electronic payments in Nepal. The government and Nepal Rastra Bank have actively promoted digital payments as part of their Digital Nepal strategy. Additionally, financial institutions have introduced various incentives, discounts, and cashback offers to encourage the use of digital payment platforms. The increasing availability of high-speed internet and affordable smartphones has further facilitated the transition towards cashless transactions.
What to Expect in the Future?
Experts predict that Nepal’s digital payment ecosystem will continue to expand in the coming years. Simplified digital payment processes, the rise of fintech companies, and continued efforts by the government to build a digital economywill further accelerate this trend. As more businesses and consumers shift towards secure and efficient electronic payments, Nepal is poised to experience a major transformation in its financial landscape
