Nepal

Here are the main points to understand about the Nepalese e-commerce sector:

• Market size and growth. Nepal's e-commerce market is projected to reach $695 million by 2024, positioning it as the 75th largest globally. A compound annual growth rate (CAGR) of 3.3% is expected from 2024 to 2028, leading to a market volume of $790.2 million by 2028.
• Internet and mobile penetration. Approximately 60% of Nepalis have internet access, with 95% using mobile phones. This mobile-first trend favors e-commerce growth.
• Consumer demographics. Over 60% of the population is under 30, and they are comfortable with online shopping.
• Payment methods. Online payment gateway in Nepal and digital wallets are gaining traction, though cash on delivery remains prevalent.
• Challenges. Limited infrastructure, low digital literacy, and cybersecurity concerns are significant hurdles.
• Government initiatives. The government is actively working to streamline regulations, enhance digital infrastructure, and promote a digital economy.

Analyzing the numbers provides insight into business opportunities. We've consolidated the most pertinent details of online payment in Nepal in a single table.

• Population: 30 million
• Mobile Banking Users Percentage: 62.8%
• Popular Payment Nepal Methods: eSewa, Khalti, IME Pay
• Total Mobile Banking Transactions (Annual): NPR 4 trillion
• Consumer Spending: NPR 3,500 billion

Payment Gateway — The Definition

Payout gateways are crucial tools in the digital & in-store payout process, acting as secure intermediaries between merchants and financial institutions. They collect plus encrypt payout information from customers, ensuring that sensitive data is transmitted safely for processing and authorization. This process enables a seamless transaction experience across e-commerce platforms and physical point-of-sale systems.

Here are key functions of transaction gateways:

• Data collection & encryption. Gather and secure payment Nepal details, like credit card or digital wallet information, to prevent unauthorized access.
• Authorization process. Transmit encrypted data to the appropriate financial institutions for transaction approval or denial.
• In-store remittance support. Facilitate contactless payments at point-of-sale terminals, enhancing convenience for customers using smartphones or physical cards.
• Fraud prevention. Incorporate security checks and protocols to minimize the risk of fraudulent transactions.
• Variety of payout options. Support multiple transaction methods, providing customers with flexible choices and merchants with broader customer reach.

Remittance gateways are indispensable for merchants aiming to provide secure, efficient, and versatile deposit solutions. By ensuring a smooth transaction flow and maintaining high security standards, they enhance all shopping experience for customers while protecting businesses from financial risks.

Key Considerations for Selecting a Payment Gateway in Nepal

Therefore, choosing an appropriate international payment gateway in Nepal is an important concern for merchants working in Nepali State to ensure the security and smoothness of every transaction, and definitely at an affordable cost; for that, here is a set of key factors on which to focus.

✅ Transaction fees & pricing

Most gateways are charged on a per-transaction basis, in addition to setup costs, monthly fees with a per-transaction fee. Compare these various charges to get the best value for your business​.

✅ Security standards

Ensure a transaction gateway is selected that adheres to globally accepted standards for security; such as PCI DSS, which aims to save customer data from breaches or fraud. Its key security features shall provide encryption, fraud detection plus two-factor authentication​.

✅ Supported transaction methods

Gateway should accept a range of remittance options, including mobile wallets like eSewa, Khalti or Fonepay, along with debit/credit cards plus bank transfers. Offering multiple methods can increase customer convenience and sales​.

✅ Integration & compatibility

Ensure your gateway integrates easily with your existing website or app. Look for APIs, plugins or support for popular platforms like WordPress or WooCommerce. Smooth integration process reduces setup time and technical issues​.

✅ Customer support

Reliable, responsive customer support is crucial. Check if the gateway provider offers quick, effective help through various channels such as phone, live chat or email​.

✅ Cross-border payouts plus multi-currency support

If you plan to cater to international customers, ensure the transaction gateway supports multiple currencies and handles cross-border transactions with low fees​.

✅ Settlement time

Fund transfer speed from payout gateway to your bank account can affect cash flow. Some gateways offer faster settlements, such as daily or weekly deposits​.

Top Nepal Payment Gateways

From individuals to businesses, in recent years, the digital gateway of Nepal has racked significantly with various platforms offering convenience and security. With the ever-increasing trend of e-commerce, it has concurrently seen a number of remittance gateways emerge. Thus, several have been key players in this respect for seamless online payout services. While there are several varieties of payout systems available, this section shall majorly dwell on some of the best and most used gateways within Nepali State.

While selecting the finest gateway, businesses need to consider key elements associated with security, ease of use, transaction fees, and integration with local banks and electronic commerce platforms. Here are some of the top-rated transaction Nepali gateways, enabling diverse requirements across different spectrums of customers:

• CellPay;
• eSewa;
• Fonepay;
• Khalti;
• NSBL Payment Gateway;
• Prabhu Pay.

These gateways have been selected based on their popularity, ease of use, and the range of services they offer. In following sections we will provide this detailed review of each, outlining their key features, pros & cons, plus other relevant details. This will help businesses and individuals choose the best payout system according to their specific needs​.

🔥 CellPay Digital Payment

Website:CellPay Official Website
CellPay is a gateway payment service provider licensed by Nepal Rastra Bank, offering a unique approach compared to traditional digital wallets. Unlike other platforms, CellPay allows users to make deposits directly from their bank accounts without the need to load money into a separate wallet.

Main Features & Services:

• Direct bank payments. No wallet required, payouts are made directly from linked bank accounts.
• Multiple account linking.Users can link several bank accounts, including from major Nepali banks.
• Bill payouts plus top-ups. Supports utility payments, telecom top-ups, payments at various merchants.
• QR code transactions. Users can make payments using QR codes.
• Loyalty points. Offers a reward system with transaction points, which can be redeemed for services.

Pros:

• No need to maintain a digital wallet;
• Direct payments from bank accounts;
• Secure with high-level encryption;
• Multi-language support (English plus Nepali).

Cons:

• Limited to Nepal;
• Can only be used on one mobile device at a time.

Setup fee.-

Requirements. A verified bank account with one of CellPay’s partner banks.

Accepted transaction methods.Bank transfers, QR code payouts.

Countries. Nepal.

Supported currencies. Nepalese Rupees (NPR).

🔥 eSewa Nepal Payment Gateway

Website:eSewa Official Website
eSewa is popular digital payment in Nepal, launched in 2009 for multi-utility online payments, including utility bill payouts, mobile recharges, flight bookings, plus many other services online. It is widely accepted by merchants. eSewa has become synonymous with digital payments in Nepal, offering both wallet services and integration with local banks.

Main Features & Services:

• Digital wallet. Supports utility payouts, mobile top-ups, online purchases.
• Bank transfers.Can transfer money between eSewa accounts and to banks.
• QR code transactions.Quick, contactless payments are available.
• Merchant payouts.Accepted by a wide range of merchants.

Pros:

• Well-established & trusted;
• Broad range of services;
• Widely accepted by merchants;
• Free to use regarding most services.

Cons:

• Transaction fees regarding certain services;

Setup fee. -

Requirements. eSewa account registration.

Accepted transaction methods. Digital wallet, bank transfers, QR payouts.

Countries.Nepal.

Supported currencies.NPR.

🔥 Fonepay Nepal Payment Gateway

Website:Fonepay Official Website
Fonepay, a subsidiary of F1Soft Group, is Nepal’s first interoperable payout system connecting banks, wallets or merchants. It facilitates seamless transactions across these platforms, offering both person-to-person (P2P) plus person-to-merchant (P2M) payments, making it a highly versatile Nepal payment gateway.

Main Features & Services:

• P2P & P2M payments. Supports fund transfers between individuals plus payments to merchants.
• QR payments. Allows payments through QR codes for a contactless experience.
• Bank Integration. Directly linked with major Nepali banksl.

Pros:

• Interoperable across banks & wallets;
• Secure transactions;
• Wide merchant acceptance.

Cons:

• Limited international support.

Setup fee. -

Requirements. Fonepay registration via linked bank.

Accepted transaction options.Wallet, bank transfers, QR payouts.

Countries. Nepal.

Supported currencies.NPR.

🔥 Khalti Payment Gateway

Website:Khalti Official Website
Khalti is a fast-growing digital wallet and Nepal payment service launched in 2017. It provides users with a variety of services, including utility payments, mobile recharges, and online shopping. Khalti is especially popular for its easy-to-use interface with seamless transactions, including QR code payouts.

Main Features & Services:

• Utility plus bill payments.Supports internet, TV or electricity remittances.
• QR payouts.Fast transactions at merchants are available.
• Flight or movie bookings. Offers ticket purchasing services.

Pros:

• User-friendly interface;
• Wide range of services;
• Loyalty points system.

Cons:

• Fewer international features.

Setup fee. -

Requirements. Registration with Khalti.

Accepted transaction methods. Wallet, bank transfers, QR payments.

Countries. Nepal.

Supported currencies. NPR.

🔥 NSBL Payment Gateway

Website:NSBL Official Website
Nepal SBI Bank (NSBL) offers a reliable payment gateway Nepal for merchants, supporting both local & international transactions through Visa/ Mastercard. It is ideal for businesses looking to accept online payouts securely.

Main Features & Services:

• Card payments. Supports Visa/Mastercard transactions.
• Secure transactions.Compliant with international security standards.
• Merchant services.Aimed at businesses accepting online payouts.

Pros:

• Trusted international payment options;
• Backed by SBI Bank;
• Secure & reliable.

Cons:

• Higher fees regarding international transactions.

Setup fee. Varies by merchant.

Requirements. Merchant account with NSBL.

Accepted transaction options. Visa, Mastercard.

Countries. Nepal.

Supported currencies. NPR, USD.

🔥 Prabhu Pay Gateway Payment

Website:Prabhu Pay Official Website
Prabhu Pay is one of the most popular payment gateways offering utility payouts, mobile top-ups, fund transfers etc. It is part of larger Prabhu Group. It is gaining popularity for its user-friendly services and remittance capabilities.

Main Features & Services:

• Utility bill payments. Supports a wide range of services.
• Mobile top-ups. Easy recharge options.
• Remittance services: Allows for receiving/sending remittances.

Pros:

• Simple & user-friendly.
• Offers remittance services.

Cons:

• Fewer features compared to larger wallets.

Setup fee. -

Requirements. Registration with Prabhu Pay.

Accepted transaction methods. Wallet, QR payouts.

Countries.Nepal.

Supported currencies. NPR.

🔥 Paykassma

Website:paykassma.com
Paykassma is a global payment aggregator facilitating seamless online transactions for businesses and consumers in Nepal.

Main Features & Services:

• Employs advanced fraud detection and prevention measures, including real-time monitoring and encryption, to protect businesses and customers from fraudulent activities.
• Provides access to over 100 local payment methods, including eSewa and Khalti, ensuring customers can pay using their preferred options.
• Offers a T+0 settlement period, granting immediate access to funds without holds or rolling reserves, crucial for maintaining cash flow.

Pros:

• Compatible with numerous currencies, facilitating international transactions.
• Does not impose rolling reserves or chargebacks, allowing immediate access to all funds.
• Competitive fees for sending and receiving money.

Cons:

• Some transactions might not offer all preferred payment methods.
• Fees can vary depending on the type of transaction or currency conversion.

Setup Fee.—

Requirements.Completion of Know Your Customer (KYC) process

Accepted transaction methods.Visa, MasterCard, Bank transfers, eSewa, Khalti

Countries.125 countries, including Nepal

Supported Currencies.NPR.

10 Best Payment Gateways You Should Choose in Nepal

When choosing payment gateway in Nepal for your business, it’s essential to compare different platforms based on their setup fees, transaction charges with features. Below is a comparison table of the top payout gateways, outlining some of key metrics to help you make an informed decision.

This table helps you evaluate which is best suited for your business based on costs, features, and functionality.

Conclusion

Payment gateway landscape in Nepali State has grown significantly in recent years, reflecting the country’s increasing shift towards digital financial services. With a rise in e-commerce, mobile banking, plus online transactions, platforms like eSewa, Khalti, CellPay, or Fonepay have played vital roles in streamlining transactions.

National Payment Gateway (NPG) initiative by the Nepal government marks a significant step towards achieving a cashless economy. However, challenges remain, such as delayed implementation of the NPG and limited infrastructure in rural areas. Overall, digital payments in Nepali State are becoming more integrated, accessible, and secure, paving the way for a more inclusive financial future.

FAQ

Which payment gateway is best in Nepal?

There isn’t a single “best” gateway payment in Nepali State as a choice depends on specific needs. However, eSewa is widely regarded as the most popular, comprehensive transaction gateway in this country.

Is eSewa a payment gateway?

Yes, eSewa is Nepal’s leading online remittance gateway, launched in 2009. It allows users to perform wide range of digital transactions, including paying utility bills, purchasing tickets, plus transferring money, making it a versatile and widely used platform​.

What is the National Payment Gateway of Nepal?

National Payment Gateway (NPG) is an initiative by the Nepal government to centralize plus monitor digital financial transactions across various sectors, including government payouts. It aims to reduce reliance on international remittance processors such as Visa or Mastercard​.

What is the first payment gateway in Nepal?

Primary digital transaction gateway in Nepal is eSewa, launched in 2009. It pioneered digital deposits in this country and has since grown to become the most widely used digital wallet in Nepali State, offering services ranging from utility bill payouts to airline ticketing​.