A cashless shift in Nepal brings new ease and new risks
Summary
Nepal's shift to cashless payments through platforms like eSewa and Fonepay is easing business and personal transactions, though rising digital fraud poses new challenges.
Key Points
- Nepal has seen significant growth in digital payments and fintech platforms like eSewa, Khalti, ConnectIPS, and Fonepay, accelerated by the Covid-19 pandemic.
- Digital transactions enable faster cash flow for businesses and easier money management for individuals, expanding financial inclusion beyond bank accounts.
- Nepal Rastra Bank is developing a Central Bank Digital Currency (CBDC) to further digital financial access, starting with business use.
- Digital fraud and cyber security risks have increased, with scams on social media and phishing attacks prompting calls for stronger security and user vigilance.
