Nepal has recorded a new high in digital transactions. AS per Nepal Rastra Bank (NRB)’s data, the online transactions reached a massive 44.14 trillion in the month of Magh. This reflects the growing inclination towards a cashless economy among the consumers in Nepal.
As per the federal bank, the total reflects domestic and international transactions by Nepalese. This data makes a significant climb from last year. In Magh, 2077, this number totaled only 29.20 trillion which means the total transaction this time around shoed the increase by a whopping 51.16%.
Prepaid Cards contributed most
In terms of cashless payment, prepaid cards were used most, NRB’s report reflects. In Magh, a total of 31.33 trillion worth of transactions were completed via prepaid cards which is 70.98 % of the total transactions in the month of Magh. This is an increase of 58.25% from the last time around. Last year in Magh, transactions via prepaid cards peaked at 17 trillion rupees.
| Mode of digital transaction | Number of Frequency 2078 Magh | Total sum 2078 Magh | Number of Frequency 2077 Magh | Total sum 2077 Magh |
| Prepaid cards | 45 thousand | 31.33 trillion | 12 thousand (approx.) | 17 trillion |
NRB says prepaid cards are used more as it facilitates payment mode for students pursuing study abroad. The bank itself has encouraged the use of prepaid cards which is showing its effect.
Users can get prepaid cards from any licensed banks in Nepal and use them in any country for payment. This has made it the favorite payment gateway for many in and out of the country.
Also read: Digital Payment System Integration Between Nepal And India Process Started
Mobile Banking Rises in the Frequency in Transactions
But there is a key detail that needs a check. While prepaid cards accounted for the highest sum in transactions, the frequency of use of mobile banking shows a tremendous increase in recent months. In fact, mobile banking has climbed to the pole position in Magh eclipsing digital wallets.
Last year, mobile banking accounted for 96 lakh times for transactions. This year it increased to 1.38 crore times. This year’s Magh drew in 1.43 trillion of transactions in amount against last year’s 2 trillion-plus the amount in total transaction.
| Mode of digital transaction | Number of Frequency 2078 Magh | Total sum 2078 Magh | Number of Frequency 2077 Magh | Total sum 2077 Magh |
| Mobile Banking | 1.38 crore | 1.43 trillion | 96 lakh | 2 trillion + |
The trend of resorting to mobile banking is increasing as it includes various payment services that digital wallets have offered. As bank accounts remain the default for saving cash, the inclusion of various payment services potentially overrides the need for digital wallets.
Check out: FonePay and VISA Partnership Allowing Payment for Foreigners
Digital Wallets Down a Rank
Likewise, digital wallets have fallen just below mobile wallets at 5th for a number of transactions in the month of Magh. In this Magh, digital wallets received a total of 1.29 crore times of transactions which translated to over 2.36 trillion in amount. Last year, they stood for 1 crore and 5 lakh for a number of transactions for the amount of 1 trillion and 1.4 trillion in amount.
| Mode of digital transaction | Number of frequency 2078 Magh | Total sum 2078 Magh | Number of frequency 2077 Magh | Total sum 2077 Magh |
| Digital Wallets | 1.29 crore | 2.36 trillion | 1.05 lakh | 1.4 trillion |
With the rise in mo-banking, credit cards, internet banking, IPS, and else have slumped. Part of the reason is for overwhelming use of digital wallets and the accelerated growth of mobile banking in recent months.
Do read: Hamro Patro’s Digital Wallet Is Coming Soon!
As mobile banking expands its services and includes those available on wallets, it will widen its use cases further in the coming days. But for sure, digital transactions will only grow in prominence with smartphones and internet access at paramount.
Which mode of payment do you use? Leave in the comments below.