Nepal will launch its own national payment switch, designed to integrate multiple banks, digital payment vendors such as IPS, ConnectIPS, quick response (QR) code, and other digital ecosystem players into one system, enabling them to transfer funds. The launch is expected in October. 

Digitals payments, especially through digital wallets, saw significant increases after the government imposed a nationwide lockdown last year. The idea of having a national payment switch was mooted at the time.  It will also reduce the country’s dependency on MasterCard or Visa.

The payment switch will route individual transaction settlement requests to a central switch, instead of being transmitted through multiple international card schemes, reported The Kathmandu newspaper. The system will also inter-wallet transactions, which is not possible under existing systems.

“We aim to celebrate the fiscal year 2022-23 as electronic payment transaction promotion year, thus developing essential infrastructure and raising awareness about cashless society will be our key focus in the current fiscal year,” Nepal Rastra Bank Governor Maha Prasad Adhikari was quoted as saying by The Kathmandu Post.

Once implemented, it will reduce the transaction cost which is currently paid to VISA and Master Card. It will also help maintain the records related to the mode and platform used for transactions.  

(SAM)