Nepal's digital payment systems witnessed robust growth in the Nepali month of Chaitra 2080 (mid-March to mid-April 2024), according to the latest data released by Nepal Rastra Bank.
Mobile banking emerged as the most popular digital payment method, with over 35 million customers making nearly 35 million transactions worth NPR 299 billion during the one-month period. This represented a significant surge compared to the same period last year.
QR-based payments also saw tremendous growth, with over 16 million transactions amounting to NPR 45.7 billion, driven by increased adoption of QR codes for merchant payments.
Internet banking transactions crossed 281,000 in number, though the total value was relatively lower at NPR 14.4 billion.
Among institutional payment systems, connectIPS processed over 6 million transactions worth NPR 513 billion, while the electronic cheque clearinghouse (ECC) handled over 1 million transactions valued at NPR 512 billion.
The number of debit cards issued crossed 11.7 million, while credit cards numbered over 266,000 and prepaid cards stood at 94,496 as of mid-April 2024.
Consumer convenience and the growth of payment infrastructure such as QR codes and mobile wallets are fueling the rapid digitization of payments.
Nepal's payment service providers, banks, and fintech companies have been aggressively promoting digital payments through consumer incentives and merchant onboarding initiatives.
However, some analysts warn that the consistent growth in digital payments also heightens cybersecurity risks that will require robust measures from regulators and payment operators.
