{"id":310149,"date":"2026-08-07T12:41:49","date_gmt":"2026-08-07T06:56:49","guid":{"rendered":"https:\/\/insurancekhabar.com\/?p=310149"},"modified":"2026-08-07T12:45:05","modified_gmt":"2026-08-07T07:00:05","slug":"despite-the-acceleration-of-digital-payments-in-nepal-cross-border-trade-and-inter-connectivity-still-challenge-2","status":"publish","type":"post","link":"https:\/\/english.insurancekhabar.com\/despite-the-acceleration-of-digital-payments-in-nepal-cross-border-trade-and-inter-connectivity-still-challenge-2\/","title":{"rendered":"Despite the acceleration of digital payments in Nepal, cross-border trade and inter-connectivity still challenge"},"content":{"rendered":"

Kathmandu. The Asian Development Bank (ADB) has released a detailed report on Nepal’s digital payment systems and its contribution to cross-border trade facilitation. <\/p>\n

According to the report, Nepal has seen remarkable progress in digital payments, mobile banking and the use of QR codes in recent years. However, the lack of complete interconnectedness between payment systems, the digital divide between rural and urban areas, and the technical and regulatory complexities of cross-border payments remain key challenges. <\/p>\n

Where is the progress in Nepal’s digital payments?TAG_OPEN_strong_41 <\/strong><\/span><\/p>\n

According to the report, Nepal has made a big leap in financial inclusion and digital payment system, owing to the policy leadership of NRB and the active work of the private sector. The number of mobile banking users has increased from 1.1 million in 2020 to 28.2 million by 2025. At the same time, the number of digital wallet users has reached 2.47 million. <\/p>\n

The use of QR codes has become widespread among small and retail businesses. The number of merchants using QR codes has increased from 280,000 in 2021 to more than 2,340,000 by the beginning of 2025. <\/p>\n

With the digitalization of remittances, the share of remittances through formal channels has reached 93 percent, and the cost of direct receipt of money through digital wallets is decreasing. <\/p>\n

Main Challenges<\/strong><\/span><\/p>\n

The technology is there but delays in facilitation: The <\/span> report points out some practical obstacles to trade facilitation and day-to-day transactions, even though the scope of digital payments has expanded. <\/p>\n

Nepal-India Bilateral Payment Delay: <\/span> Although Indian tourists can easily make payments through UPePay in Nepal, the facility allowing Nepalis to make QR payments in India has not yet been fully implemented due to the dispute over the commission structure. <\/p>\n

It is still difficult for payment service providers and payment system operators to do all transactions from the same unified interface as they use different structures. High tariffs and taxes on smartphones up to 71 percent and poor internet quality in remote areas have left rural businesses behind. <\/p>\n

Over 90 per cent of small businesses have access to the internet, but due to high transaction fees and lack of digital literacy, less than 10 per cent have adopted digital payments. <\/p>\n

It warned that the risk to international correspondence banking could increase due to areas of reform in the money laundering framework. <\/p>\n

ADB’s major recommendations<\/strong><\/span><\/p>\n

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The ADB recommends developing strategies in three key areas to make Nepal’s digital payment system safe, effective, and business-friendly. <\/p>\n