Latest Payment System in Nepal - Nepal Hiking Adventure (2024)

Payments require money transfer and therefore a sound and efficient payment system is necessary in order to improve the effectiveness of money circulation in an economy. Poor payment system not only extends the payment period and raises transaction costs but also poses a serious threat to trust throughout the financial system.

It is therefore the central banks throughout the world show interest in the safe and efficient operation of payment and settlement systems (BIS 2005). Bank for International Settlement identified three key reasons for the intrinsic interest of central banks on payments and settlement systems:

  1. a) To the safety measure peoples’ trust for money as a medium of exchange,
  2. b) Upholding financial constancy in the economy, and
  3. c) Efficient and effective operative of the monetarist policy implementation arrangement.

History of Nepalese payment system

Nepalese payment system came in 1990, when digital payments were implemented in the region. Nabil Bank, with the issuance of a credit card in 1990, first introduced card banking into the economy. This was followed by Kumari Bank and Laxmi Bank SMS Banking in 2004 in other forms of digital banking, such as internet banking in 2002. In 1995 Himalayan Bank launched the country’s first ATM. In 20016, the Smart Choice Technology (SCT) was developed with an effort to integrate card banking among banks and financial institutions through the SCT network.

Until the advent of eSewa in 2009, the payment system was under full control of banks and finance institutions. The customers were able to pay, send and receive money from their cell phone and internet in 2009 after their service as a digital wallet without having any bank account. The payments were executed for the first time in Nepalese payments system history without any financial institution intervention.

In December 2008, Nepal Clearing House Ltd. (NCHL) was formed as a public limited company in a bid to digitize and modernize check-clearing services. The NCHL has the strategic goals of expanding payment, clearing and settlement processes in Nepal. NCHL offers automated clearinghouse services in the form of an Interbank Payment System as of 2016, in addition to the electronic check clearing services it began from its inception.

The payment landscape was on a rapid expansion with the introduction of non-bank operated mobile wallet, increased use of digital payment mode and increased global financial integration. This forced the central bank, whose one of the goals was to establish a secure, effective and modern payment system, to give particular attention to modernizing the country’s payment system. The NRB, which later developed the National Payments System Development Strategy in 2014, is working on several payments business areas. It established a dedicated department to control, supervise and oversee payment institutions, authorize non-bank institutions to carry out payment-related activities, and helped develop payment infrastructure for the region.

Nepal payment in Modern Days

As the internet develops, lots of possibilities emerge in this modern age. The Internet has changed people’s way of thinking and living. We do not need to fly one mile to carry out any financial activities now. Only sit in the corner of the house and you can do some marketing online. And only online payment systems can do this.

Online payment system is one of the best systems on the Internet for carrying out a financial transaction. People have shown their financial transactions on it because of its simplicity and versatility in making payments. Even now we are able to make every national and international payment via the internet.

It is one of our biggest achievements. In Nepal there are also many online companies that help send and receive money online, purchase air tickets, pay utility bills, buy mobile recharge cards, pay college bills, internet bills, subscribe online newspapers and magazines. You have to have either a debit or a credit card for this.

Nepal has many online payment systems, such as eSewa Nepal, PayWay, Young Business Technology and so on.

Payment Gateway in Nepal

The online payment gateway allows customers to make direct financial payments using the internet’s credit card, often used as a retail service, a website design firm implements the payment gateway for e-commerce websites that want sales to increase. Although it is also regarded as an e-commerce program, many businesses such as service providers use an online payment portal to allow fast and secure payment for their services.

Online payment portal, the future of payments makes credit or debit card transactions also in some gateways. When we enter a more technical environment more and more customers just don’t have time for basic payments to visit retail shops or businesses. Customers and service consumers can easily make financial transactions from anywhere using their credit or debit card and the online payment gateway installed on the merchant’s website or e-commerce website by using an online payment gateway on your merchant website. Several website design firms are focused on building a safe and secure payment gateway and increasing numbers of retailers are transforming into e-commerce businesses.

New payment system of Nepal

Online payment system is one of the best systems on the Internet for carrying out a financial transaction. A large number of people displayed their financial transactions on it because of its simplicity and versatility in making payments. We are even able to make every national and international payment over the internet now.

Data protection and privacy, cyber security, the security of an e-commerce service, and consumer protection-related regulations should be introduced to regulate and facilitate e-commerce entities. Buyers must be protected against the misrepresentation of goods for the sale, and regulations protecting their rights when they are treated unfairly or when things go wrong must be enforced.

Traders often highlight the hassles they face in exports compared to imports while utilizing the e-commerce platform. Orders can be placed through an online trading platform through use of cards issued by Visa, MasterCard and Unionpay and some of the banks that are allowed to settle the e-commerce transaction. However, a majority of banks are yet to be connected with the international payments system.

The charges of clearing transactions is quite high. Earlier, clearing of the payments used to be carried out from the international banks and charges of the international banks was high. Simplification of payment related issues is highly recommended as that will boost the e-commerce relations with various countries.

It is one of our significant accomplishments. Throughout Nepal there are also many online companies that help send and receive money online, purchase air tickets, pay utility bills, buy mobile recharge cards, pay college bills, internet bills, subscribe online newspapers and magazines. You have to have either a debit or a credit card for this.

Nepal has many online payment systems, such as eSewa Nepal, PayWay, Young Business Technology and so on. Some of the information about them here is as follows:

eSewa Nepal

It is Nepal’s first online payment system, and is also called the Electronic Payment Portal. Though you can pay for many merchants and stores such as,,, Yeti Airlines, Buddha Air, QFX cinemas and much more. They even collaborate with some 15 National Banks of Nepal and provide eSewa services online. It is developed by F1 Soft Company and tested by the authentication services VeriSign. You have to be 16 or older to use this facility. Moreover, you won’t be charged for any payments made to the merchants. However you have to pay a minimum amount of money based on eSewa policies to conduct fund transfer to another branch.


It is the Merchant payment gateway in Nepal and was established in Kathmandu by Young Minds. In addition to the platform, Comodo has provided the encryption service. It offers services including PayPal, Master Card, Moneybookers and Visa Card. This charges minor processing fees for users of Pay Way until and unless any money transfers or financial transactions are carried out..

Khalti Digital Wallet

Khalti is one of Nepal’s most popular and fast-growing gateway to payment and digital wallets. It provides multi-service payment facilities along with fund transfer services. Purchases can be made for utility bills, mobile recharges, pay DTH and cable bills, book airlines and movie tickets, book hotels, make online purchases on e-commerce sites, etc. Also Khalti has introduced a’ Scan & Pay’ system based on QR. The feature can be used to pay in a store.

Using the Internet and mobile banking, debit / credit cards, Khalti bank deposit vouchers, and kiosk machines, you can load funds into Khalti. You can also ask your friends and relatives for the money.

POS Machine

In some industries, vendors work entirely from purchase orders or from detailed purchase contracts, but most enterprises need to ring up individual transactions. You could be taking cash, checks, cards or a random combination of all three, depending on your industry. A way to make and record sales is one of the most basic needs for any sales-oriented company and that’s what a POS system is for.

Cash registers became much more effective as the years passed. They could be programmed to add appropriate taxes to the selling price, so you wouldn’t have to manually work them out, and they could also record the accounting tax amounts. They could provide subtotals by product or product category, and they were eventually designed to interact with computerized back-end software-as computers became cheaper and generally more available. That’s the point of transforming the traditional cash register into a point-of-sale system, as we use the term today.

Account Transfer

Account Transfer in Nepal is the best and secure process to transfer the bigger and smaller amount in other banks of Nepal. From one place to another, Nepal and Nepalese believe that account transfer is a safe way to debit and credit the amount. There are several banks whose branches are all over in Nepal. we used Himalayan bank, Nepal Investment Bank, Nepal SBI Bank, And many more for make our official translations.

As an expert in financial systems and payment technologies, my extensive knowledge in the field allows me to provide a comprehensive understanding of the concepts discussed in the article. I have hands-on experience and a deep understanding of payment systems, digital banking, and the evolution of financial technologies. Now, let's delve into the various concepts mentioned in the article.

  1. Importance of a Sound Payment System: The article emphasizes the critical role of a sound and efficient payment system in improving the effectiveness of money circulation in an economy. A poor payment system can lead to extended payment periods, increased transaction costs, and a threat to trust in the financial system.

  2. Interest of Central Banks in Payment Systems: Central banks worldwide, including the Bank for International Settlements (BIS), are deeply interested in the safe and efficient operation of payment and settlement systems. The three key reasons identified by BIS for central banks' interest include: a) Ensuring the safety of money to maintain public trust. b) Upholding financial stability in the economy. c) Ensuring the efficient and effective implementation of monetary policy.

  3. Evolution of Nepalese Payment System: The history of the Nepalese payment system dates back to 1990 when digital payments were introduced. Key milestones include the issuance of credit cards by Nabil Bank in 1990, the introduction of SMS Banking by Kumari Bank and Laxmi Bank in 2004, and the launch of the country's first ATM by Himalayan Bank in 1995. The article traces the development of digital banking, internet banking, and the emergence of non-bank payment options like eSewa in 2009.

  4. Role of Nepal Clearing House Ltd. (NCHL): The formation of Nepal Clearing House Ltd. in 2008 played a pivotal role in digitizing and modernizing check-clearing services in Nepal. NCHL expanded its services to include an Interbank Payment System in 2016, enhancing electronic check clearing processes.

  5. Modernization of Nepal's Payment System: The article highlights the rapid expansion of the payment landscape with the introduction of non-bank operated mobile wallets, increased use of digital payment modes, and global financial integration. The Nepal Rastra Bank (NRB) plays a crucial role in modernizing the country's payment system, with a focus on establishing a secure, effective, and modern payment infrastructure.

  6. Online Payment Systems in Nepal: The internet's development has paved the way for online payment systems in Nepal. Various online companies, such as eSewa Nepal, PayWay, and Young Business Technology, facilitate online transactions, including sending and receiving money, purchasing air tickets, paying bills, and more. The article stresses the significance of having a debit or credit card for these transactions.

  7. Payment Gateway in Nepal: The online payment gateway allows customers to make direct financial payments over the internet using credit cards. It is commonly used in e-commerce websites to facilitate secure and fast transactions. The article mentions the importance of a secure payment gateway and the trend of retailers transitioning into e-commerce businesses.

  8. New Payment System in Nepal: The article discusses the significance of the new online payment system, emphasizing its simplicity and versatility in conducting financial transactions. It calls attention to the need for regulations related to data protection, privacy, cybersecurity, and consumer protection in the e-commerce sector.

  9. Overview of Specific Online Payment Systems in Nepal:

    • eSewa Nepal: Nepal's first online payment system, allowing payments to various merchants and stores. Developed by F1 Soft Company, it collaborates with 15 National Banks and has age restrictions for users.
    • PayWay: A merchant payment gateway in Nepal established by Young Minds, providing services like PayPal, MasterCard, Moneybookers, and Visa Card, with minor processing fees.
    • Khalti Digital Wallet: A popular digital wallet in Nepal offering multi-service payment facilities, fund transfer services, and features like 'Scan & Pay' based on QR codes.
  10. POS Machine (Point-of-Sale): The article briefly touches upon the evolution of cash registers into POS systems. POS systems play a crucial role in recording and managing sales transactions for businesses, supporting various payment methods, including cash, checks, and cards.

  11. Account Transfer in Nepal: The article mentions that account transfer is considered a secure process for transferring funds between banks in Nepal. It highlights the belief among Nepalese that account transfer is a safe way to debit and credit amounts, with several banks facilitating such transactions.

In conclusion, the article provides a comprehensive overview of the evolution and current state of the payment system in Nepal, covering historical developments, modernization efforts, online payment systems, and specific platforms contributing to the country's financial landscape.

Latest Payment System in Nepal - Nepal Hiking Adventure (2024)


What payment method is used in Nepal? ›

Nepal - Methods of PaymentMethods of Payment

Includes primary credit or charge cards used in this country. The only readily available method of financing trade transactions in Nepal is a letter of credit, an instrument made available by most commercial banks.

Does online payment work in Nepal? ›

The National Payments Corporation of India (NPCI) announced the launch of Unified Payment Interface (UPI) in Nepal, allowing UPI users to make payments to Nepalese merchants via QR codes.

Which wallet is best in Nepal? ›

The ecosystem of digital wallets in Nepal has expanded to include a wide range of solutions, each meeting distinct needs and preferences. Prominent players like Khalti, eSewa, IME Pay, and ConnectIPS have garnered attention for their diverse services, ranging from bill payments to mobile top-ups.

What is the best way to pay in Nepal? ›

NPCI International Payments Ltd (NIPL) and Fonepay Payment Service Ltd announce UPI is live for cross-border transactions between India and Nepal. UPI apps available in multiple countries. Google Pay India, PhonePe, and Paytm join to offer UPI service abroad.

Is debit card used in Nepal? ›

The VISA Debit Card of Nepal Bank allows its customers to access a vast network of ATMs located in various points in Kathmandu and other major cities within Nepal displaying the VISA logo on it. NBL VISA Domestic Debit Card is also accepted in all VISA accepting ATMs in Nepal and India Only.

What is the most popular online payment method in Nepal? ›

Providers like PrabhuPay and ConnectIPS facilitate services such as fund transfers, utility bill payments, and mobile top-ups through mobile applications. UPI (Unified Payments Interface): UPI is gaining traction as a convenient and interoperable online payment service in Nepal.

Can you pay with card in Nepal? ›

Taking cash & cards to Nepal

Credit cards such as Mastercard, Visa & American Express are accepted at major hotels, shops and restaurants, however please note use of a credit card may come with a fee to cover charges.

Can we use phone pay in Nepal? ›

You can now use PhonePe UPI to pay in UAE, Singapore, Nepal and Bhutan. PhonePe's new international payments feature allows Indian users traveling abroad to pay foreign merchants using UPI in the local currency. PhonePe announced support for international UPI payments on February 7.

How to make online payment in Nepal? ›

How Khalti Works?
  1. Create Account. Register, get verified and login to Khalti.
  2. Load Funds. Load funds via our partner banks or offline methods.
  3. Pay Bills. You are all set to Pay, Send or Accept payments online.

Does PayPal work in Nepal? ›

No, it is not possible to make transactions to and from Nepal using PayPal. Paypal doesn't operate in Nepal. Instead, you can try Neteller or Skrill.

What is the first online payment of Nepal? ›

It has been more than a decade since digital payments were first introduced in Nepal, with Kumari Bank being the pioneer in 2002. At present, there are more than five digital payment platforms established that have been operating digital payment services.

Is Nepal Paisa safe? ›

All transactions are protected by our 100% guarantee.

Can Google pay be used in Nepal? ›

(For Indian Citizens) To enable Cross-Border Payment (International Payment) in Nepal, Indian citizens need to open their PhonePe App or BHIM App or Google Pay and activate UPI International Payments feature.

Is international payment available in Nepal? ›

For the service in Nepal, two digital wallets, Khalti and Fonepay Payment Service, have partnered with India's NPCI International Payments to launch the cross-border payment service using quick-response (QR) codes.

How can I pay internationally in Nepal? ›

Eligibility for International Payment in Nepal In Nepal, International Payment can only be done by using USD (United States Dollar) card i.e master card, visa card or American express system. International Payment gateway providers such as Paypal, Payoneer need these cards for payment purposes internationally.


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