How Fonepay is leading Nepal's Digital Payment Revolution with UPI Technology
In today’s fast-paced world, convenience is key especially when it comes to payments. Imagine a seamless way to pay for your meals, shopping, or transportation while traveling in Nepal, all without the hassle of physical cash or currency conversion.
Gone are the days of carrying bulk cash bundle of Indian Rupee 100 or worrying about exchange rates while traveling. This is the reality for Indian tourists in Nepal, thanks to interoperable digital payment solutions that make transactions convenient, faster, and safer than ever before.
But it’s not just the travelers who get the benefit. More than 100,000 Nepali merchants are also embracing the digital revolution, catering to cross-border customers in a more efficient and convenient way. With the launch of UPI acceptance in Nepal last year, Feb 28, 2024, Nepal is experiencing a transformation in how money moves across its borders- creating a win-win situation for both local businesses and Indian visitors.
Nepal’s Journey Towards Digital Payments
Nepal, traditionally a cash-based society, has increasingly embraced interoperable mobile banking payment solutions since past five years, driven by the adoption of Mobile banking technology by almost all banking sectors. The COVID-19 pandemic further accelerated this shift, as demand for safer, contactless transactions. As an impact, the Fonepay users grew by 5x. This signifies Nepal's rapid shift from cash to digital payments, driven by increased trust, interoperability, and pandemic-induced demand for contactless transactions. This growth highlights stronger financial inclusion, merchant adoption, and a thriving digital payment ecosystem.
How Fonepay and UPI Benefit Nepali Merchants and Indian Tourists
Nepal has long been a favored destination for Indian tourists, with its rich cultural heritage, spiritual sites, and breathtaking landscapes. However, one common challenge faced by travelers has been payment convenience, as carrying and exchanging cash can be cumbersome. With the integration of Fonepay and UPI (Unified Payments Interface), cross-border digital transactions have become effortless, benefiting both Nepali merchants and Indian visitors.
Indian travelers visiting Nepal can now make payments directly through UPI, just as they do in India, without worrying about currency exchange. Whether shopping at local markets, dining at restaurants, or booking hotels, they can simply scan Fonepay QR codes and pay in INR, which gets settled in NPR for the merchants.
For Nepali merchants, accepting UPI payments via Fonepay means increased business opportunities. Since Indian tourists no longer face payment barriers, they are more likely to spend freely on shopping, food, and other experiences, ultimately boosting sales.
UPI is now accepted across Nepal in all 7 provinces and 7 key districts, making cross-border digital payments seamless for Indian tourists.
1 Year of UPI Payments in Nepal—The Impact is Here!
In just one year, cross-border UPI acceptance has revolutionized Nepal’s digital payment landscape, transforming tourism, merchant engagement, and foreign exchange efficiency. With over 563,000 transactions processed, totaling NPR 1.59 billion, Nepal has significantly reduced its dependence on traditional banking rails, saving NPR 31.8 million in forex outflow. This impact extends beyond numbers—over 100,000 merchants, from luxury hotels to small Pan shops, are now digitally empowered, driving financial inclusion at all levels. Indian tourists are embracing seamless payments, with UPI usage increasing across hospitality, retail, and transport sectors. The shift from cash to digital has not only boosted local businesses but also positioned Nepal as a leader in cross-border fintech innovation.
As Nepal looks ahead, the focus is on expanding digital payments to more international markets, enhancing security measures, and further integrating digital solutions to fuel tourism and economic growth.
