KATHMANDU, Jan 30: Tourists from various countries can now make payments in Nepal using QR (Quick Response) Code with the implementation of the international digital transactions by Nepal Clearing House Limited (NCHL), a subsidiary of Nepal Rastra Bank authorized for payment system operations and electronic transactions settlement in Nepal.
The Nepal Rastra Bank (NRB) has enabled international online payments, and NCHL– a public limited company established in 2008 under the leadership and guidance of NRB – has forged agreements with various international merchants. As a result, citizens of 10 countries can now make payments directly through online platforms in Nepal.
Previously, people conducted international transactions and payments only through SWIFT and ATM cards. Now, the introduction of this new system allows international QR payments under the "People to Merchant (P2M)" model, enabling customers to handle transactions independently. This system will help integrate every transaction made by foreign tourists into the banking system.
This system allows citizens from several countries in Central Asia, Southeast Asia, Europe and Africa to make payments via QR when purchasing goods and services in Nepal. Currently, international users of 14 e-wallets and mobile banking apps can make payments using the 'Nepal Pay' QR. This facility is now available for tourists from China, Macau, Hong Kong, Italy, Malaysia, the Philippines, Mongolia, Singapore, South Korea and Thailand.
NCHL is working to gradually extend this facility to citizens from other countries worldwide.
NCHL stated that it has reduced the necessity for tourists to carry cash while visiting Nepal.
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Currently, tourists can make direct QR payments in Nepal using Alipay from China, Alipay Hong Kong, MPay from Macau and Tinaba Bank wallet from Italy. Merchants can also accept payments through two wallets from Malaysia: ‘Touch 'n Go e-Wallet’ and ‘MyPB’, promoted by Public Bank Berhad.
Additionally, customers can make direct QR payments in Nepal via GCash from the Philippines, HiPay from Mongolia and two wallets from Singapore, ‘Changi Pay’ and ‘OSBC Digital’.
Similarly, users can now make payments directly in Nepal through South Korea's KakaoPay, Naver Pay, and Toss Pay. They can also make online payments through Thailand's TrueMoney.
This facility will benefit both tourists and merchants. Merchants can easily receive payments from foreign customers. As payments become hassle-free, foreigners can purchase anything they want at any time, which is expected to boost sales.
Additionally, foreign tourists won't need to carry or exchange large amounts of foreign currency, simplifying currency exchange. They can make payments in Nepal using their country's e-wallet or mobile banking app.
The government and the central bank expect this initiative to streamline financial integration, benefiting both tourists and Nepal's economy.
An official of the Nepal Tourism Board (NTB) stated that simplifying the payment system will direct tourist spending into the banking system, thus benefiting the economy. "Currently, not all tourist expenditures are captured in the system. When tourists pay in cash, the actual spending goes unaccounted, but this system records them," he explained. He also stated that easier online payments will increase tourist spending.
Recently, Nepal has attracted increasing numbers of tourists. It is known as a destination for adventure and nature tourism, including high mountain climbing and trekking. Every year, thousands of foreign tourists visit Nepal to experience its natural landscape and wilderness as well as historical sites, unique art, heritage, and culture, including UNESCO World Heritage sites such as Pashupatinath, Swayambhunath, Basantapur Durbar Square, and Baudhanath Stupa.
The tourism industry has significantly contributed to the revival of the country's economy. In 2024, 1.15 million foreign tourists visited Nepal. This marks a more than 14 percent increase in tourist arrivals compared to 2023, when 1.015 million foreign tourists visited Nepal.
The NTB states that India sends the highest number of tourists to Nepal.
In 2024, India sent 318,000 tourists to Nepal. The United States, the second-largest source country, sent 111,000 tourists, followed by China with 101,000, the UK with 57,000, Bangladesh with 48,000, Australia with 43,000, Thailand with 30,000, Sri Lanka with 30,000, Germany with 29,000, and South Korea with 27,000, according to the NTB.
Tourists from more than 220 countries visit Nepal, prompting NCHL to work diligently on expanding this payment facilitation beyond its current scope.
This collaboration is expected to transform and sustain global digital trends while significantly promoting the development of a cashless economy in Nepal. The NTB stated that providing payment facilitation to foreign nationals from every country will further contribute to the economy.
Earlier in June 2024, the central bank had allowed the use of QR code and related payment tools by using Retail Payment Switch for cross-border financial transactions between Nepal and India. However, the scan and pay system for cross-border travellers of two countries, which was planned to come online last December, has been delayed due to an issue of commission charged by Nepali banks.
