KATHMANDU: Digital payment usage in Nepal has expanded rapidly, with mobile banking, QR payments and digital wallets recording strong growth in both transaction volume and value, according to 12-month data from Nepal Rastra Bank for fiscal year 2025/26.

Mobile banking transactions reached 82.6 million in Asar 2083, up 26.12% from 65.5 million a year earlier.

QR payments recorded the sharpest growth. Transaction volume increased 72.96% year-on-year to 69.59 million from 40.24 million. Wallet transactions also rose 41.93% to 57 million from 41.9 million.

Transactions through the Faster Payment System increased 22.62% to 22.1 million, while IPS transactions rose 3.63% to 5.64 million.

Internet banking transactions increased 21.70%, credit card transactions 33.09% and e-commerce transactions 64.96%.

Mobile Banking Leads in Transaction Value

Mobile banking remained the largest digital payment channel by transaction value. Transactions through mobile banking reached Rs 696.94 billion in Asar 2083, up 31.4% from Rs 530.28 billion a year earlier.

QR transaction value rose 67.7% to Rs 189.91 billion from Rs 113.20 billion, while wallet transactions increased to Rs 58.05 billion from Rs 48.44 billion.

Transactions through the Faster Payment System reached Rs 68.31 billion, up 21.40%, while IPS transactions rose 23.20% to Rs 57.67 billion.

Internet banking transaction value increased 22.70% to Rs 31.10 billion. Credit card transactions rose 17.10% to Rs 2.60 billion, while e-commerce transaction value increased 33% to Rs 1.97 billion.

Cash Withdrawals and Card Use Decline

As digital payments expand, ATM cash withdrawals and card transactions are declining. ATM cash withdrawal transactions fell 9.83% to 9.99 million from 11.08 million a year earlier.

Debit card transactions also declined to 10.56 million from 11.97 million, while POS transactions fell 32.31%.

Cross-Border QR Payments Nearly Triple

Cross-border QR payments recorded even faster growth. The number of transactions increased from 155,000 to 425,000 in one year.

Transaction value surged from Rs 446.9 million to Rs 1.17 billion, representing growth of about 162%.

The data points to a broader shift in Nepal’s payment ecosystem, with consumers increasingly turning to mobile banking, QR payments and digital wallets for everyday transactions while reliance on cash and traditional card-based payments continues to decline.