Nepal’s Cashless Payment: Revolution or exclusion?
Summary
Nepal is experiencing a rapid transformation in digital payments with increasing adoption of platforms like eSewa and Khalti, driven by urban centers but facing challenges in rural inclusivity due to digital literacy and infrastructure gaps.
Key Points
- Digital payment transactions in Nepal surged to over Rs 18 trillion in FY 2023/24, a 64% increase from the previous year.
- Urban areas like Kathmandu and tourist hubs have embraced digital payments widely, but rural regions lag due to low digital literacy and poor connectivity.
- Experts highlight the need for better digital infrastructure, literacy, trust, and interoperability among banks and fintech to ensure inclusive digital finance.
- Rising digital payments have brought convenience and governance benefits but also increased cybercrime risks and data privacy concerns, necessitating strong legal safeguards.
