The digital payment sector in Nepal has witnessed remarkable growth over the past two years, with a significant transition from traditional cheque transactions to digital methods like QR codes and mobile banking, as reported by Nepal Rastra Bank’s Payment Oversight Report for the fiscal year 2022-23. Cheque transactions decreased by 8.97%, while mobile banking and QR code payments soared by 60.19% and 104.81% respectively, compared to the same period the previous year.
This shift is largely attributed to the lower costs associated with digital transactions compared to cheque processing. Additionally, the government of Nepal has boosted digital payment adoption by offering a 10% refund on the 13% value-added tax for online payments made at various hospitality establishments. This policy requires operators to directly credit the refund to customers’ accounts, further encouraging the use of digital payment methods.
