Digital Payment Boom: QR Transactions Surge by 92% in Nepal
Nepal’s shift toward digital payments is accelerating rapidly, with QR payment transactions rising by 92.5% and transaction value increasing by 91.8% in FY 2024/25, according to Nepal Rastra Bank data. Digital wallet and mobile banking users have also crossed 26 million and 27 million, respectively.
Nepal’s digital payment ecosystem continued its rapid expansion in FY 2024/25, with consumers increasingly shifting away from cash-based transactions. According to Nepal Rastra Bank, the number of payments made through QR codes increased by 92.5 percent, while the total transaction value surged by 91.8 percent during the fiscal year. QR payments have become increasingly common for everything from everyday purchases to large commercial and service-sector transactions. The number of digital wallet users surpassed 26.76 million, while mobile banking users crossed 27.74 million, reflecting growing public adoption of digital financial services. To make digital transactions more secure, reliable and integrated, Nepal Rastra Bank has accelerated the implementation of the National Payment Switch (NPS) through Nepal Clearing House Limited (NCHL), covering the Retail Payment Switch, National Payment Interface for cross-border transactions, National Card Switch and the domestic NepalPay card scheme. Cross-border digital payments have also expanded significantly. Under Nepal’s partnership with India’s UPI system, more than 1 million QR-based transactions worth over Rs. 2.69 billion have already been settled. Transactions through international platforms such as Alipay, UnionPay and WeChat Pay are also expanding. Meanwhile, the Real-Time Gross Settlement (RTGS) system continues to facilitate high-value transactions for businesses and institutions. Alongside this rapid growth, Nepal Rastra Bank has strengthened regulation and supervision of payment service providers, including restricting license renewals and revoking licenses of entities that failed to meet regulatory requirements. However, the growing digital payment ecosystem also faces challenges, including cybersecurity threats, system disruptions, financial fraud, intense market competition and incomplete data reporting. Addressing these issues effectively will be crucial for making Nepal’s digital economy safer, more reliable and sustainable.