Nepal Moving Ahead In Digital Transaction: Total Number of connectIPS Users Stands Approx 1 Million Till Kartik End
The recent increase in the use of a digital payment system is an interesting prospect in predicting macroeconomic activity. A digital payment system comprising credit cards, debit cards, automated teller machines (ATMs), mobile banking, and similar other modes of payments represents a broad spectrum of spending activity.
In this article, we will analyze the Nepal Rastra Bank (NRB)'s monthly Payment Index which tracks the expansion of primarily digital payment methods in Nepal. Kartik 2079 and 2078 are used as comparison points (Y-O-Y Basis).
Electronic payments gained traction since the first lockdown on March 2020. The total amount of connectIPS transaction stands at Rs 2.79 Kharba till Kartik end of the current year, which is an increase of 37.85% from the same period last FY.
According to statistics published by NRB, the country experienced a massive mobile banking transactions in the month of Kartik 2078, stood 1.26 Crores. For the month of Kartik 2079, the mobile banking transaction has increased to 2.050 Crores. This is an increase of 62.69%.
In a similar vein, the data reveals that there has been a notable incline in various payment methods, including ATM-Cashless withdrawal, IPS, ConnectIPS, and online shopping, among others.
It is remarkable to note that digital payment services have evolved into a desirable and dynamic aspect of the payments environment in developing nations. Particularly, a few fresh fintech that offers payment solutions has been able to expand quickly in an era of inexpensive finance.
On the other hand, the NRB-Access on Payment Index shows that the adoption and penetration of digital payments are both growing significantly across the nation.
As can be observed, mobile banking customers have increased from 15.43 million to 19.4 million, while ConnectIPS users have increased from 7.16 lakh to 9.58 lakh. The data also indicates that the number of people using credit and debit cards has increased. With the growth of digital banking, many financial institutions have decided to begin or accelerate their own digital transformation.
