Nepal's Journey to Digital Payments: The Rise of QR Code Systems

In recent years, QR code payments have revolutionized how we pay for goods and services. With just a smartphone, people can make fast, secure, and contactless transactions by scanning QR codes, which contain all the necessary payment information. This technology has become a staple in shops, restaurants, and even online shopping.

The growth of QR code payments is deeply tied to the rise of the internet and advancements in technology. These innovations have transformed the way we handle money, making our financial transactions more efficient and accessible.

In Nepal, the digital payment system has evolved gradually over the years. It all began in the early 1990s when Nabil Bank introduced credit cards, followed by Himalayan Bank in 1995, which launched ATMs and domestic credit cards. ATMs allowed people to withdraw cash, while credit cards made cashless transactions possible.

The introduction of internet banking in 2002 by Kumari Bank was another milestone, allowing customers to conduct banking transactions online from their computers or mobile devices. Mobile banking was introduced in 2004 by Laxmi Bank, enabling users to perform banking operations via SMS or mobile apps.

Despite these innovations, it took time for digital banking to become popular in Nepal, as many people were unfamiliar with its uses. However, as technology improved, digital banking became more accessible, and today, customers can manage all their banking needs online.

In 2009, eSewa became Nepal's first digital payment app, licensed by the central bank, Nepal Rastra Bank (NRB). Since then, several other digital wallets and payment apps have emerged, including Khalti, IME Pay, Fonepay, and others.

The development of Nepal's digital payment infrastructure has been supported by key government initiatives. The creation of the Nepal Clearing House Limited (NCHL) in 2008, followed by the introduction of the Nepal Payment System Development Strategy (NPSDS) in 2014, laid the groundwork for a more organized and secure payment system. In 2015, NRB established the Payment System Department (PSD) to regulate and monitor payment companies, ensuring a safe and reliable system for users.

These efforts have collectively contributed to the growth of Nepal's digital payment ecosystem, making financial services more convenient and accessible for everyone.