Analyzing Nepal's Payment Systems: Kartik 2081 vs. Mangsir 2081

Nepal's digital payment ecosystem continues to evolve, reflecting the rapid adoption of modern financial technologies. Using data from the Nepal Rastra Bank's updated monthly payment system indicators for Kartik 2081 and Mangsir 2081, we explore trends across key areas.

Key Comparisons in Payment Systems Usage

1. Real-Time Gross Settlement (RTGS)

• Volume: Increased slightly from 59,304 in Kartik to 63,509 in Mangsir.
• Value: However, the transaction value dropped significantly, from NPR 7,819.87 million to NPR 5,294.27 million. This indicates lower-value transactions dominated Mangsir.

2. Mobile Banking

• Volume: Mobile banking transactions grew from 43.98 million in Kartik to 47.45 million in Mangsir.
• Value: Transaction value also rose, from NPR 374.67 million to NPR 388.44 million, underscoring its increasing popularity as a primary financial tool.

3. QR-Based Payments

• Volume: QR payments surged from 19.31 million in Kartik to 23.34 million in Mangsir.
• Value: Similarly, the transaction value increased from NPR 66.87 million to NPR 72.29 million, showcasing QR as a convenient and growing payment option.

4. Wallets

• Volume: Wallet transactions jumped from 28.5 million to 32.30 million.
• Value: The transaction value reflected the growth, climbing from NPR 37.32 million to NPR 40.79 million, solidifying wallets9 role in Nepal's cashless push.

5. E-Commerce Payments

• Volume: E-commerce payments grew from 159,070 to 177,912.
• Value: Likewise, the value rose from NPR 901 million to NPR 1,116 million, highlighting the rise of online shopping during this period.

6. Cross-Border QR Acquiring

• A newer addition to the system indicators, cross-border QR transactions increased from  50,455 transactions in Kartik to 56,712 transactions in Mangsir, the value rose from NPR. 156 million to NPR 193 million,  reflecting the integration of international payment methods.

Trends and Insights

1. Mobile Banking and Wallets Lead the Way: Mobile banking and digital wallets have solidified their dominance, thanks to their ease of use and wide acceptance across various sectors.

2. QR Payments on the Rise: The significant growth in QR payments underscores their role in micro and small transactions, making them a preferred method for everyday use.

3. E-Commerce and Cross-Border Payments: As internet penetration deepens and businesses adopt online platforms, e-commerce payments are surging. Cross-border QR acquiring, while still nascent, shows promise for international trade.

4. RTGS Challenges: The decline in RTGS transaction value could indicate shifting preferences toward alternative platforms for larger transactions.

Conclusion

The comparisons between Kartik and Mangsir 2081 reveal a dynamic and rapidly growing payment system landscape in Nepal. With increasing reliance on digital modes, the financial ecosystem is becoming more inclusive, efficient, and geared toward a cashless future. Continued investments in infrastructure and user education will be key to sustaining this momentum.