Kathmandu, Oct 24: Nepal is moving towards a cashless economy as digital payment systems gain ground, with QR payments, mobile banking and digital wallets increasingly replacing cash for everyday purchases.
Nearly all government expenditure is now conducted through banking and digital channels, while 35 per cent of revenue collection takes place digitally. Low digital literacy, cyber fraud risks and limited access to smartphones and the internet continue to constrain the shift.
Nepal Rastra Bank data show a sharp rise in digital transactions in the first two months of fiscal year 2026/27 compared with the same period last year, while ATM withdrawals and debit card transactions have declined.
QR-based payments rose 83.95 per cent to 75.58 million transactions, with their value increasing 65.88 per cent to Rs167.93 billion.
Mobile banking transactions increased 29.73 per cent to 81.19 million, with payments worth Rs614.64 billion, up 31.30 per cent from Rs468.16 billion a year earlier.
Digital wallet transactions grew 35.86 per cent to 51.49 million, while their value rose 13.28 per cent to Rs49.10 billion from Rs43.34 billion.
Cross-border QR payments, introduced to facilitate transactions by international tourists and across borders, also expanded sharply. Transaction numbers increased 126.65 per cent to 306,867, while their value surged 110.72 per cent to Rs792 million.
ATM withdrawals fell 7.1 per cent to 9.49 million transactions, while their value dropped 15.12 per cent to Rs72.17 billion.
Debit card transactions declined 6.74 per cent to 10.08 million, with their value falling 14.36 per cent to Rs74.78 billion.
In contrast, online purchases using credit cards increased 31.94 per cent to 244,488 transactions, with their value rising 57.51 per cent to Rs248.5 million. Payments through point of sale (POS) machines grew 20.17 per cent to 937,805 transactions, while their value increased 4.19 per cent to Rs4.43 billion.
Former National Planning Commission vice chairman Prakash Kumar Shrestha said the growth in transaction numbers had not always translated into higher transaction values. Low literacy, cyber fraud and persistent preference for cash remain barriers, he said.
Nepal Rastra Bank Executive Director Anuj Dahal said cash would remain useful during emergencies, network outages and for people without smartphones.
NRB spokesperson Guru Prasad Paudel said Nepal must strengthen digital infrastructure and cybersecurity as electronic payments expand.
He called for secure national data centres, clear policies on cloud services, and legal frameworks governing data protection, data transfer and artificial intelligence. He also stressed making the national identity card’s biometric system usable across sectors.
Paudel said the government, central bank, regulators, police cyber bureau and judiciary must strengthen digital awareness, expertise and cybersecurity mechanisms to detect and prevent cyber threats.
People’s News Monitoring Service
Login to add a comment