UPI in Nepal: How It Works and Key Details

UPI in Nepal
UPI in Nepal

In a significant move towards enhancing digital transactions across borders, the Unified Payment Interface (UPI) has been launched for cross-border payments between India and Nepal. This initiative brought to life through a partnership between NPCI International Payments Ltd (NIPL) and Fonepay Payment Service, Nepal’s largest payment network, marks a pivotal step in the financial connectivity of the region. Announced at the Global Fintech Fest 2023 in India, this development is set to revolutionize how transactions are conducted between the two neighboring countries, fostering economic ties and enhancing the ease of commerce and tourism.

Also Read: List of Countries that Accept UPI Payments (Updated)

Can I Use UPI in Nepal?

Indian consumers now have the luxury of making instant, secure, and convenient payments in Nepal using their UPI-enabled apps. This service is specifically tailored for person-to-merchant (P2M) transactions, which are facilitated through QR codes. In its initial phase, this feature aims to empower Indian visitors in Nepal by allowing them to transact at various business outlets across the country seamlessly. Whether shopping at local stores, dining at restaurants, or availing of services, Indian tourists and visitors can make payments just as they do back home, using their favorite UPI apps.

How Can Merchants Participate and Accept Payments via UPI?

For Nepalese merchants to accept payments via UPI, they need to be part of the Fonepay Network, Nepal’s most extensive payment network collaborating with NIPL for this initiative. Merchants within this network can effortlessly start accepting payments from Indian customers by integrating the UPI payment solution into their transaction processes. This integration not only opens up their business to a broader customer base from India but also simplifies the transaction process, making it more efficient and secure.

Businesses interested in becoming part of this transformative movement must reach out to Fonepay Payment Service to get the necessary setup and support for UPI transactions. This move not only enhances the customer experience by providing a familiar and trusted payment method but also promises higher transaction success rates and immediate settlement of funds.

How Will UPI Help India and Nepal?

The launch of UPI for cross-border transactions between India and Nepal is more than just a technical achievement; it’s a step towards closer economic integration and mutual prosperity. Here’s how this initiative is set to benefit both nations:

  • Economic Ties and Commerce: By facilitating easier and more secure payments, UPI is expected to boost commerce between India and Nepal. Merchants in Nepal can now tap into the vast Indian market, inviting more tourists and shoppers, while Indian businesses see a smoother transaction process for Nepalese customers.
  • Tourism Boost: With the ease of payments, tourists from India are more likely to visit Nepal, knowing that their payment needs are covered seamlessly. This ease of spending is anticipated to lead to a boost in tourism, benefiting the local economy and businesses.
  • Financial Inclusion and Prosperity: Both Ritesh Shukla of NIPL and Diwas Kumar of Fonepay envision this partnership as a catalyst for financial inclusion, aiming to bring more individuals and businesses into the formal economic fold. The convenience and security of UPI payments are expected to encourage more transactions, contributing to the economic prosperity of both regions.
  • Innovation and Transformation: This cross-border payment solution is a testament to the innovative spirit of both countries. It sets a precedent for financial technology use in regional cooperation and economic development, paving the way for further innovations and collaborative efforts in the future.


The introduction of UPI in Nepal represents a monumental leap towards enhancing financial connectivity and economic cooperation between India and Nepal. By enabling secure, convenient, and instant payments across borders, this initiative promises to bolster commerce, tourism, and economic prosperity in the region. As more merchants and consumers embrace this technology, the UPI initiative is poised to become a cornerstone of Indo-Nepal economic relations, showcasing the power of digital finance in bridging borders and building communities.

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