Nepal’s digital payment transactions have surged significantly in recent years, with a 43.5% increase in transaction volume over the past three fiscal years. A report from Nepal Rastra Bank highlighted the role of QR code-based payments, which saw a 230% increase in transaction volume and a 210% growth in value from FY2021–2022 to FY2023–2024.
The rise in digital payments is attributed to the growing accessibility of digital platforms, with QR code payments becoming a preferred method due to their convenience and real-time processing. As a result, the number of merchants accepting QR payments has risen dramatically, with QR codes issued to merchants increasing from 282,000 in July 2021 to 2.34 million in January 2024.
While the digital payment landscape is rapidly evolving, challenges such as infrastructure gaps in rural areas, mobile connectivity issues, and rising online scams persist. However, the adoption of digital lending, mobile banking, and cross-border digital payments is steadily growing, contributing to the overall shift from cash to digital payment methods.
Notably, mobile banking usage jumped from 114 million users in mid-2020 to 265 million by January 2024, and QR code payments have continued to grow, with transactions in Nepal now expanding internationally through cross-border QR payments with India and China.
Key Insights from the Report:
- QR Code Payment Growth: QR payments grew by 230% in volume and 210% in value from 2021 to 2024.
- Digital Adoption: Mobile banking users increased by 132% from 2020 to 2024, reflecting growing digital engagement.
- Cross-Border Payments: QR transactions with India and China have seen significant growth, with over Rs1.5 billion transacted through cross-border services.
As digital payments continue to expand, Nepal is positioning itself as a leader in regional payment innovations, paving the way for broader financial inclusion and a more digitally connected economy.
