Nepalese Merchants Now Accept UPI Payments

UPI, the popular payment system in India, is now live in Nepal. Indian consumers can make instant, secure and convenient payments to Nepalese merchants by scanning QR codes with their UPI-enabled apps. This is a result of a collaboration between NPCI International Payments (NIPL) and Fonepay Payment Service, Nepal’s largest payment network.

What is UPI?

UPI stands for Unified Payment Interface, a real-time payment system that allows users to transfer money between bank accounts using a mobile app. UPI was launched by the National Payments Corporation of India (NPCI) in 2016 and has become one of the most popular payment methods in India, with over 3 billion transactions per month.

How does UPI work in Nepal?

In September 2020, NIPL and Fonepay signed a pact to enable cross-border transactions between India and Nepal using UPI. In its first phase, this partnership allows Indian consumers to make payments at various business establishments in Nepal by scanning QR codes displayed by the merchants. Merchants affiliated with the Fonepay Network can accept UPI payments from Indian customers.

What are the benefits of UPI payments in Nepal?

UPI payments in Nepal offer several benefits for both consumers and merchants, such as:

• Convenience: Users can make payments with just a few taps on their mobile phones, without the need to carry cash or cards.
• Security: Users do not have to share their bank account details or card information with the merchants, as the transactions are encrypted and authenticated by their UPI PIN.
• Cost-effectiveness: Users do not have to pay any extra charges or fees for using UPI, as the transactions are settled directly between the banks.
• Speed: Users can make payments instantly, as the transactions are processed in real-time.
• Inclusiveness: Users can make payments to any merchant who accepts UPI, regardless of their bank or app.

How to use UPI in Nepal?

To use UPI in Nepal, users need to follow these simple steps:

• Download and install any UPI-enabled app from the Google Play Store or Apple App Store. Some of the popular apps are Google Pay, PhonePe, Paytm, BHIM and Amazon Pay.
• Link your bank account with the app and set your UPI PIN.
• Visit any merchant who accepts UPI payments in Nepal and scan their QR code with your app.
• Enter the amount and confirm the payment with your UPI PIN.
• Receive a confirmation message from your app and the merchant.

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