The newly amended policy also seeks to enable PSPs to merge their operations. Credit: Towfiqu barbhuiya on Unsplash.

Nepal Rastra Bank has revised its existing policy to enable foreign players to invest in the country’s digital payment industry.

As per the new guideline, Nepalese payment service providers (PSPs) and payment system operators (PSOs) are eligible to receive up to 15% of their total capital from foreign companies.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Currently, various PSPs, such as eSewa, Khalti and IME Pay are helping merchants with online payments acceptance in Nepal.

The banks and non-banks that facilitate in processing payments are serving as PSOs in the country, reported The Kathmandu Post.

The newly amended policy also seeks to enable PSPs to merge their operations.

In addition, the country’s central bank has enhanced the paid-up capital requirement for companies involved in digital payment systems.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Nepal Rastra Bank executive director and chief of payment department Guru Prasad Poudel said: “There are already 10 PSOs and 27 PSPs in Nepal, and most of these firms do not have the required amount of capital.

“Most of them are running at a loss.”

Nepal Rastra Bank has also imitated measures to raise the capital requirement for digital service and system firms so that they have enough cash with them.

Poudel added: “These are the companies working in technology. Inadequate capital may create problems for them as they don’t make an immediate profit as other companies do.

“They have to operate with less return on profit for many years, and it is necessary to increase their paid-up capital base.”

Nepal currently has over 20 million mobile wallet users, with more than 10.6 million e-wallet users and 1.9 million internet banking users.