Fonepay QR Payment- Nepal's Preferred Mode of Digital Payment
Digital payments are rapidly becoming the preferred method of payment around the world.
With the rise in technology, many people are using digital payment as a form of payment method. Due to its convenience and security features, digital payments have now become the preferred mode of payment by consumers globally. As per reports from Statista, the total transaction value in the digital payment segment is projected to reach $9.4 trillion in 2023. Looking at the year-on-year growth rate, the digital payment segment has shown an annual growth rate of 11.8% in 2023 resulting in a projected total amount of $14.78 trillion by 2027. E-wallets, mobile payments, and QR code payments are among the digital payment solutions that are gaining popularity.
According to the reports from McKinsey’s Digital Payments Consumer Survey, more than 82% of Americans are using digital payment. Likewise, four out of five Americans used some form of digital payment. Similarly, in the case of the Asian market, digital payment has also been blooming. Looking at our neighboring country, China, digital payment has become so popular that cash payment is becoming increasingly irrelevant. Likewise, India has become a leading country in the global digital economy. Digital payments are becoming increasingly popular around the world and Nepal is no exception. Although cash is still the predominant method of payment in Nepal, digital payment platforms like Fonepay, eSewa, and IME Pay are flourishing. While the country has adopted digital payment methods, there are still huge challenges to overcome including improving access to digital payment services in rural areas. With the development in technology, it’s likely that digital payment will become even more prevalent in Nepal.
What is Fonepay QR Payment?
Fonepay QR Payment is a digital payment method that allows users to make payments by scanning a QR code through their mobile device. With Fonepay QR Payment in Nepal, users can make payments instantly and securely without the need for cash or physical cards. It is a simple and secure form of digital payment which works by allowing users to scan a QR code with their mobile device and then make a payment using their mobile banking apps or e-wallets. Moreover, it eliminates the need for physical cash or credit cards and makes payments instant, convenient, and secure.
Fonepay has become a dominant force in Nepal's digital payment landscape. The rising prevalence of QR payment in Nepal is anticipated to increase in tandem with technological progress. Fonepay ensured the development of a merchant-friendly system while implementing QR technology for the first time in Nepal, considering both the cost and operational elements in contrast to traditional point-of-sale (POS) infrastructure. When it comes to both developing and implementing new features, Fonepay has always been an innovator. With a significant market share of 99% in Nepal's P2M (person to merchant) and 62% in the P2P (person to person) domains, today Fonepay is the industry leader. Reaching such market domination in such a short period of time while abiding by compliance and regulatory criteria goes to show the company's growth strategy and Fonepay’s relentless efforts to provide consumers instant, convenient and secured payment options.
Since its operation from 2019, as of 2023, Fonepay has processed QR transactions worth totaling NPR 471 billion+, which is 3.5 Bn+ in $USD. Looking at the year-on-year growth rate, Fonepay QR payment adoption among users has shown an enormous annual growth rate of 1317% from FY 2077/78 to FY 2079/80 to 2023. This impressive number highlights how widely people have adopted and trusted the network.
But if we're going to go into figures, there's more to the story. Those figures skyrocket as close to NPR 3 trillion Rupees when you include in all fonepay's services, such as Fonepay QR payment service, Fonepay interbank fund transfer service (Fonepay Direct), and the online payment platform service, popularly known as Fonepay Bills.
Also, Fonepay has recently created a historical milestone by successfully processing retail payment transactions worth over NPR 10 billion on a single day. This remarkable achievement occurred on October 17, 2023, highlighting a significant milestone for Fonepay and for the entire fintech ecosystem in Nepal.
Fonepay is gaining popularity in Nepal, particularly among younger consumers who prefer the convenience and security of digital payments. Besides, it has on-boarded wide range of merchants across Nepal including supermarkets, restaurants, and petrol pumps to make QR payments more widely available. The number of merchants that have joined the Fonepay network has reached 1.2 Mn+ as of November 2023.
How to pay using Fonepay QR?
To make a payment using Fonepay QR payment, user needs to follow a few simple steps:
Step 1: Open the mobile banking app or e-wallet on your mobile device and select the QR Payment option.
Step 2: Scan the QR code displayed at the merchant's point using your mobile device.
Step 3: Enter the due amount to pay and confirm the transaction.
After confirmation, the payment is processed instantly, and you’ll receive a confirmation message on your device.
Benefits of Using Fonepay QR Payment
There are several benefits of using Fonepay QR payment. One of the major benefits of using Fonepay as a digital payment in Nepal is its convenience. Users no longer have to carry cash or credit cards with them. All they need is their mobile device where payments can be made instantly and easily. Additionally, it also eliminates the need for users to visit an ATM or carry a bulky wallet. Security is another top benefit and each QR payment system is designed with security. All transactions are encrypted and secured. Moreover, users can set up a PIN or fingerprint authentication for making payments. As mentioned earlier, Fonepay QR Payment has a wide range of merchants across Nepal. Thus, users can easily make payments for goods and services simply by scanning a QR code making it a convenient payment option.
Fonepay QR Payment: The preferred mode of payment in Nepal
As digital payment continues to grow its popularity, Fonepay QR Payment in Nepal is likely to become ever more widespread use and eventually become the dominant payment option in the country.
However, there are many other modes of payments that are prevalent in the global fintech arena. Fonepay has also explored some of the new payment methods in the form of NFC enabled contactless payment. Fonepay's specific offering in this category, known as FoneTAG: Fonepay TAP And GO, is also gaining traction in the market.
More about FoneTAG in our next blog. Stay tuned to our blogs.