"Nepal sees significant upsurge in digital payments"

KATHMANDU, NOVEMBER 28: A recent report by Nepal Rastra Bank (NRB) reveals a significant rise in the adoption of digital payment systems across the country.

As of the last Nepali month of Baisakh (mid-April to mid-May, 2024) this year, the use of services like mobile banking, Connect IPS, QR codes, and digital wallets saw a notable increase. Mobile banking reached 4.24 million users, marking a significant jump, while Connect IPS users grew to 6.31 million. Wallet services recorded 27.85 million transactions, and QR code-based payments surged by 9.5%, totalling 1.76 million transactions.

In Jestha (mid-May to mid-June, 2024), mobile banking users rose by 5% to 4.43 million, and wallet users grew to 32.51 million, with total transactions amounting to NPR 29.35 billion. Connect IPS users increased to 6.52 million, and QR code transactions reached 198.2 million. Internet banking saw only a slight improvement, with 330,414 users.

The trend continued into the last Ashar (mid-June to mid-July), with mobile banking users climbing to 4.57 million and total transactions surpassing NPR 456.9 million. The Connect IPS users surged to 7.78 million, with transactions totalling NPR 66.65 billion. The QR code payments exceeded 20.82 million, and wallet transactions reached 32.10 million.

In the last  Shrawan (mid-July to mid-August, 2024)), mobile banking users grew to 4.75 million, reflecting a 50.65% year-on-year increase. Connect IPS recorded 6.84 million transactions, and QR code payments reached 2.29 million, with transaction amounts of NPR 5.25 billion and NPR 622.8 million, respectively.

However, in the last Bhadra (mid-August to mid-September, 2024), mobile banking usage slightly dropped to 4.31 million. Wallet users decreased to 29.13 million, but e-commerce transactions saw an uptick, reaching 157,000.

In the last Ashwin (mid-September to mid-October, 2024), digital payment systems showed steady growth. Mobile banking users rebounded to 4.40 million, with transactions totalling NPR 401.24 million. The Connect IPS transactions rose to 7.49 million, and debit card users increased to 1.28 million.  The QR code transactions remained stable, while e-commerce transactions slightly decreased to 151,000.

The NRB report highlights the continued expansion and growing popularity of digital payment systems in Nepal, despite some minor fluctuations in specific sectors.