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. Gone are the days of carrying large amounts of cash or worrying about exchange rates while traveling. Imagine a seamless way to pay for your meals, shopping, or transportation while traveling Nepal, all without the hassle of currency conversion.

This is the reality for Indian tourists in Nepal, thanks to innovative digital payment solutions that make transactions smoother, faster, and safer than ever before.

But it’s not just the travelers who benefit. Nepali merchants are also embracing the digital revolution, offering a more efficient, secure way to do business. With the rise of digital payment systems, Fonepay, Nepal, is experiencing a transformation in how money moves across its borders—creating a win-win situation for both Indian visitors and local businesses. 

Nepal’s Journey Towards Digital Payments 

Nepal has traditionally been a cash-based society. However, with the growing influx of tourists and the need to adapt to global payment trends, the country has embraced digital solutions in the last decade. From mobile wallets to QR codes, Nepal has made great strides in modernizing its payment systems to cater to both domestic and international customers. The push for a digital economy aims not only to make payments easier but also to increase economic inclusion and security for small businesses. 

The advent of digital payment solutions, Fonepay has allowed Nepalese businesses to accept payments digitally, a crucial step for businesses that cater to a global audience. This change comes with the added benefit of better financial transparency and ease of conducting transactions, benefiting both locals and foreign visitors. 

How UPI and Fonepay Benefit Indian Tourists and Nepali Merchants 

Unified Payments Interface (UPI), introduced by India’s Reserve Bank, enables fast, secure, and hassle-free smartphone transactions. Through Fonepay’s UPI integration, Indian tourists in Nepal can make direct payments in NPR without the need for currency exchange. This seamless cross-border payment solution eliminates the need for complex currency conversion, offering tourists a more straightforward way to pay while on vacation.

Cross-border payments between India and Nepal are simplified by the UPI-Fonepay partnership. Indian tourists no longer need to worry about exchanging Indian Rupees (INR) for Nepalese Rupees (NPR). With Fonepay’s UPI integration, they can directly pay in NPR via their UPI-enabled apps, making transactions smooth and quick.  

This change benefits Nepali merchants as well, allowing them to receive payments in real-time in NPR, bypassing the traditional complications associated with cross-border money transfers.

For Nepali merchants, receiving payments from Indian tourists is just as seamless. By displaying a Fonepay QR code, merchants can accept instant payments in NPR, simplifying the transaction process. The Fonepay Business app allows businesses to easily manage and track payments, ensuring efficiency and security. 

UPI Payment Security in Nepal 

UPI payments in Nepal are designed with strong security measures to protect users and merchants. The system employs advanced encryption protocols, ensuring that transactions are secure and minimizing the risk of fraud. Since the launch of cross-border UPI payments in Nepal, there have been no significant reports of security breaches, indicating a high level of trust and reliability in the system. 

Transaction Milestones 

The adoption of UPI in Nepal has been remarkable. From the launch in March 2024, cross-border UPI Person-to-Merchant (P2M) transactions surpassed 4,87,000+ till 31st January 2025, reflecting the growing acceptance and usage of digital payments among both Indian tourists and Nepali merchants. 

The Game-Changing Impact of UPI & Fonepay Integration 

For Indian Tourists: 

• Cashless Convenience: Pay instantly at hotels, restaurants, shops, and tourist sites, without worrying about carrying cash. 

• No Exchange Hassles: Directly pay in NPR, eliminating the need to visit currency exchange counters or deal with fluctuating rates. 

• Secure, Fast Transactions: Payments are encrypted, minimizing the risk of fraud or counterfeit currency. 

• Seamless Experience: Whether you're in Kathmandu, Pokhara, or Lumbini, paying is as simple as scanning a QR code. 

For Nepali Merchants: 

• Instant Payments: Receive real-time payments, eliminating the need for cash handling and simplifying the accounting process. 

• Boosted Sales: Digital transactions encourage tourists to spend more, supporting the local economy. 

• Financial Transparency: The digital nature of payments allows for better bookkeeping and revenue tracking.

• Competitive Edge: Businesses that offer digital payment options attract a wider range of customers, both local and international. 

Enhancing the Shivaratri Experience with Digital Payments 

One of the best examples of UPI-enabled payments in action is during the Maha Shivaratri festival, when thousands of Indian devotees visit Pashupatinath Temple in Kathmandu. Cash transactions at crowded temples, local shops, and transport hubs can be a challenge, but digital payments simplify the process. With Fonepay and UPI, Indian visitors can buy prasad, pay for accommodations, and purchase gifts—all with just a scan. This frictionless payment method enhances the festival experience for both tourists and merchants. 

Expanding Seamless Payments Across Nepal 

Digital payments are becoming increasingly accepted across Nepal, offering Indian tourists a smooth experience in popular destinations such as: 

• Kathmandu & Thamel: Pay for dining, shopping, and nightlife without worrying about currency conversion. 

• Pokhara: Enjoy lakeside experiences, adventure activities, and cozy cafes with cashless transactions. 

• Lumbini: Explore historical sites and local markets with QR-based payments. 

• Chitwan: Book jungle safaris and local excursions with a simple tap on your phone. 

For Nepali merchants, adopting digital payment systems like Fonepay and UPI opens new avenues for attracting a broader customer base and staying competitive in a rapidly digitizing market.