Fonepay, Nepal’s largest interoperable payment network, has introduced its first virtual credit card, marking a key step in its mission to become a fully locally operated payment network. Developed in collaboration with Compass Plus Technologies and its award-winning payments platform, TranzAxis, the new service offers a secure, flexible, and cost-effective digital credit solution for Nepal’s financial institutions (FIs), providing a strong domestic alternative to international card networks.
The virtual credit card can be issued instantly through the mobile banking apps of Fonepay’s partner FIs and is accepted at over 1.5 million merchants. This allows customers to make secure digital payments with ease. The card transactions are processed via Fonepay’s ‘Fonepay’ mobile payment scheme. Two major local banks have already adopted the service, with a third bank set to join soon.
The successful launch of the virtual credit card follows Fonepay’s receipt of a domestic credit card scheme license from Nepal Rastra Bank, the central bank of Nepal. The project was completed on schedule thanks to the expertise and collaboration between Fonepay, Compass Plus Technologies, and local partner Pregasus, working in line with the central bank’s regulatory framework.
Paras Kunwar, Chief Operating Officer at Fonepay, commented, “This launch marks a transformative step forward in Nepal’s financial ecosystem. With the support of Compass Plus Technologies, we have introduced a disruptive credit card offering to Nepalese customers powered by a domestic mobile payment scheme that meets the needs of our financial partners and empowers millions of customers with a new, digital-first payment option. We are excited to see the positive impact this product will have on the market and look forward to expanding our offerings.”
Nayan Raut, AVP and Regional Business Development Director at Compass Plus Technologies, expressed pride in partnering with Fonepay on this groundbreaking project. He said, “Establishing a new card product and network in a complex market like Nepal is no small feat. The collaboration between Fonepay, Compass Plus Technologies, and TranzAxis enabled us to go live within a demanding timeline, fully complying with local regulations.”
Building on the success of the virtual credit card launch, Fonepay plans to roll out additional services, including physical card products and third-party processing services for international card networks. These developments will further solidify Fonepay’s position as both a strong domestic operator and an international player in cross-border payment integration.
