Nepal and India Move to Expand Real-Time Cross-Border Digital Payments
Nepal and India are preparing to expand cross-border digital payment connectivity, including wider UPI acceptance and real-time person-to-person money transfers between the two countries.
· 3 min read
Kathmandu, August 18, 2026 — Nepal and India are preparing to further strengthen cross-border digital payment connectivity, with plans to expand UPI-based services and real-time person-to-person (P2P) money transfers between the two countries.
The move is expected to make payments easier for Indian tourists in Nepal while also creating simpler ways for citizens of both countries to send and receive money digitally.
UPI Payments Already Growing in Nepal
The use of QR-based UPI payments by Indian visitors has been increasing in Nepal, particularly at major tourist destinations.
Through the Fonepay network, Indian tourists can use UPI to scan QR codes and make digital payments at locations including:
Pashupatinath
Manakamana
Chandragiri
Other participating businesses and tourist locations
More than 290,000 Indian tourists visited Nepal in 2025, creating a significant user base for cross-border digital payments.
Real-Time Money Transfers Between Nepal and India
The cross-border payment system is also moving beyond payments at shops and tourist destinations.
Interoperability between Nepal's National Payments Interface (NPI) and India's Unified Payments Interface (UPI) is being developed to enable real-time person-to-person transactions.
Collaboration with Nepal Clearing House Limited (NCHL) has also enabled cross-border remittances using mobile numbers or Virtual Payment Addresses (VPAs), reducing the need to provide detailed bank account information for transactions.
NPCI International Plans Wider Expansion
NPCI International Payments Limited (NIPL), the international arm of India's National Payments Corporation of India, has said it plans to further expand UPI-based services in Nepal.
NIPL Managing Director and CEO Ritesh Shukla said the company is focused on making digital payments easier for Indian travelers and expanding acceptance in Nepal.
The company also plans to work with Fonepay, NCHL and Nepal's regulatory authorities to expand the P2P remittance system to additional banks.
Why This Matters
The expansion could make cross-border financial transactions between Nepal and India faster and more convenient.
For travelers and consumers, QR-based payments can reduce the need to carry cash. For individuals sending money between the two countries, wider P2P connectivity could provide a simpler alternative to traditional processes.
The development could also strengthen economic and people-to-people ties between Nepal and India by making everyday digital transactions more accessible.
UPI's Global Scale
India's UPI has become one of the world's largest real-time payment systems.
According to the information provided, UPI accounts for around 50 percent of real-time payments worldwide and processes more than 23 billion transactions every month.
Nepal's expanding interoperability with the Indian system could therefore connect the country's digital payment ecosystem more closely with one of the world's largest instant-payment networks.
What Comes Next?
NIPL plans to continue working with Nepal's regulators and payment institutions to expand the system.
The next phase is expected to focus on:
Wider UPI acceptance in Nepal.
Expansion of real-time P2P transfers.
Connecting more Nepali banks to the system.
Making cross-border payments simpler for travelers and consumers.
Strengthening secure digital payment connectivity between the two countries.
Published 4 days ago in Technology