Khalti and IME Pay merging has “almost” become official. Both companies reportedly signed an agreement for their merger on Sunday, February 16, 2025. If true, the development could be a milestone in Nepal’s fintech market.
Both parties are also said to have agreed to call the merged platform “IME Khalti”. It should go live on app stores very soon. Following this merger, customers of both companies will get the service of both on a single platform. Users of both digital wallets could also get migrated to a new service in too distant future.
Khalti and IME Pay merging is Nepal’s first-ever digital wallet merger. While there are many digital wallets in Nepal, these are a few of the most used ones. Their merging is historical and significant.
Digital wallets are licensed by Nepal Rastra Bank (NRB) as payment system providers. NRB also allows digital-wallet mergers as per the first amendment in the Transaction and Settlement Bylaw, 2077.
Khalti and IME Pay merging for market disruption
A Khalti and IME Pay merger could cause a market disruption if both further their services with customer-centric practices. The biggest market leader eSewa remains atop but Khalti and IME Pay are no small timers. They have services and experiences. More than that, the merger means they now have more resources and a bigger user base. So, the onus is on them to become bigger and better. But there are challenges too.
In recent years, digital wallets have felt more pressure to stay competitive and useful for users. As mobile banking apps also began providing top-up, utility payment, and other payment facilities, mobile payment apps are seeking new ways to stay relevant.
At the same time, eSewa remains heavily dominant with an 80% market share leaving a narrow space for others to create their presence. Khalti has 4 million users which makes it a top mobile payment app and a fierce market competition. Likewise, IME Pay has 5 million users and is one of the ventures of the IME Group. So, that could send a ripple in Nepal’s digital wallet industry.
PS: eSewa has 8 million users. Khalti has 4 million and IME Pay has 5 million users. After the merger, IME Khalti will have 9 million users becoming the largest digital wallet in terms of user base.
When will IME Khalti begin service?
IME Khalti should begin its digital wallet service soon. NRB’s provision holds a merged company needs to perform integrated transactions within 30 days after the merger. So, it’s likely that the new company will begin its electronic transactions soon.
Also: Khalti-FonePay interoperability is a milestone
Broader picture!
One thing is sure though. Khalti and IME Pay merger would make IME Khalti a much bigger entity and an even bigger market player. It will also stir talks of the next stage of digital wallet industry evolution in Nepal.
Check out: Digital Transaction Limit of Digital Wallets in Nepal
What do you think of the Khalti and IME Pay merger? Are you excited to use the IME Khalti digital wallet? Do share your opinion in the comments below.