Introduction
Cross-border digital payments are becoming increasingly important as Nepal and India strengthen their financial and economic connections. In a major step towards expanding cashless transactions, PhonePe showcased its UPI-powered payment services in Nepal, highlighting how Indian visitors can use familiar digital payment apps while travelling in the country.
The special event took place in Kathmandu on May 2, 2024, with participation from representatives of Nepal’s banking, payment and business sectors. The event was supported by Fonepay Payment Service Limited, which partnered with NPCI International Payments Limited (NIPL) to enable UPI-based QR payments in Nepal.
Through this integration, Indian visitors can scan participating Fonepay QR codes using UPI-enabled applications such as PhonePe and pay local merchants directly.
Furthermore, the development supports Nepal’s growing digital payment ecosystem and creates new opportunities for tourism, retail businesses and cross-border financial services.
PhonePe Showcases UPI Services in Nepal
PhonePe presented its UPI-powered services at a special event in Kathmandu on May 2, 2024.
The programme brought together stakeholders from Nepal’s financial and technology sectors, including representatives from banks, payment service providers, merchants and business associations.
During the event, PhonePe demonstrated how its digital payment platform could support Indian visitors and Nepalese merchants.
The presentation was led by Ritesh Pai, CEO of International Payments at PhonePe. It highlighted the company’s digital payment journey in India and demonstrated how its UPI-powered solutions could improve payment convenience in Nepal.
Moreover, the event included discussions about the role of cross-border digital payments in Nepal’s economy, particularly in tourism, commerce and financial inclusion.
How PhonePe UPI Payments Work in Nepal
The cross-border payment service connects India’s Unified Payments Interface (UPI) with Nepal’s Fonepay QR network.
Indian visitors can use their preferred UPI-enabled payment applications to scan participating Fonepay QR codes at merchant locations.
The payment process is straightforward:
- Open a UPI-enabled application such as PhonePe.
- Scan the participating Fonepay QR code displayed by the merchant.
- Enter the payment amount if required.
- Confirm the transaction using the UPI PIN.
- Complete the payment and receive confirmation.
This allows Indian travellers to pay at participating restaurants, retail stores, hotels, tourist destinations and other merchant locations without relying entirely on cash.
However, the service depends on merchant participation and the availability of supported UPI applications.
Fonepay and NPCI International Make Cross-Border Payments Possible
The integration is supported by a partnership between Fonepay Payment Service Limited and NPCI International Payments Limited (NIPL).
NIPL is the international arm of India’s National Payments Corporation of India (NPCI), which operates the UPI payment infrastructure.
Meanwhile, Fonepay operates one of Nepal’s largest QR payment networks.
The partnership enabled Indian consumers to make person-to-merchant (P2M) payments in Nepal using UPI applications.
The service officially went live for cross-border transactions in March 2024. PhonePe’s May 2024 showcase helped introduce the service to Nepal’s financial stakeholders and promote awareness among merchants and travellers.
Benefits for Indian Tourists Visiting Nepal
India is one of Nepal’s major sources of international visitors. Therefore, convenient digital payment options can improve the travel experience for Indian tourists.
With UPI acceptance, visitors can use familiar payment applications instead of depending entirely on cash exchanges or international payment cards.
Some potential benefits include:
- Easier payments at participating businesses
- Reduced dependence on physical cash
- Familiar payment experience for Indian travellers
- Convenient QR-based transactions
- Faster payments at participating merchants
- Greater access to cashless services
In addition, the integration can help businesses in Nepal serve Indian visitors more conveniently.
Opportunities for Nepalese Merchants and Businesses
The expansion of UPI payments also creates opportunities for Nepalese businesses.
Merchants enrolled in the Fonepay QR network can accept payments from Indian visitors using supported UPI applications.
This can benefit several business categories, including:
- Hotels and restaurants
- Retail stores
- Tourist attractions
- Shopping centres
- Travel agencies
- Local businesses
- Hospitality services
Furthermore, digital payments can simplify transaction handling and reduce the need for cash management.
For small and medium-sized businesses, access to international digital payment networks can also improve customer convenience and support tourism-related revenue.
UPI and Nepal’s Growing Digital Payment Ecosystem
Nepal has continued to expand QR-based payments through partnerships with international payment networks.
The UPI integration with Fonepay represents an important step towards connecting Nepal’s domestic payment infrastructure with India’s large digital payments ecosystem.
During the May 2024 event, representatives from Nepal’s financial sector also discussed the importance of interoperability, security, cost-effectiveness and regulatory compliance.
The discussions highlighted how cross-border payment services could support financial inclusion and create additional opportunities for businesses.
However, the development of international payment services also requires coordination between regulators, banks, payment operators and technology providers.
UPI-NPI Linkage: Another Step Towards Two-Way Digital Payments
The cross-border payment relationship between Nepal and India has continued to develop beyond merchant QR payments.
In June 2026, NPCI International Payments Limited and Nepal Clearing House Limited (NCHL) launched a linkage between India’s UPI and Nepal’s National Payments Interface (NPI).
Unlike the earlier merchant QR service, this new connection supports person-to-person (P2P) cross-border transfers.
It allows eligible users to send money between India and Nepal using mobile numbers or virtual payment addresses, depending on the supported transaction route.
The service aims to make cross-border transfers faster, more convenient and more affordable than traditional methods.
Initially, the linkage became available through selected banks, with plans to expand access to additional financial institutions.
This development represents another step towards building a more connected digital payment ecosystem between the two countries.
Challenges and Future Opportunities
Although UPI integration offers several benefits, expanding cross-border digital payments requires continued coordination.
Payment providers and financial institutions must address areas such as:
- Regulatory compliance
- Merchant onboarding
- Transaction security
- Payment limits
- Settlement arrangements
- Currency conversion
- Service availability
- Consumer awareness
Furthermore, expanding merchant acceptance outside major cities will be important for reaching more businesses and tourists.
As more merchants join participating payment networks, cross-border QR payments could become a more common part of everyday transactions.
Conclusion
PhonePe’s UPI-powered payment showcase in Nepal highlighted the growing importance of cross-border digital payments between Nepal and India.
Through the partnership between Fonepay and NPCI International, Indian visitors can use supported UPI applications to pay participating Nepalese merchants by scanning QR codes.
Meanwhile, the 2026 UPI-NPI linkage has expanded the relationship into person-to-person cross-border transfers.
Together, these developments show how digital payment infrastructure can support tourism, commerce and financial connectivity between neighbouring countries.
As both countries continue to strengthen their payment networks, cross-border digital transactions could become increasingly convenient for travellers, businesses and individuals.
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SEO Title: PhonePe UPI Payments in Nepal: Cross-Border Digital Payments
Slug: phonepe-upi-payments-in-nepal
Focus Keyword: PhonePe UPI Payments in Nepal
Excerpt: PhonePe showcased UPI-powered services in Nepal, allowing Indian visitors to pay participating merchants through Fonepay QR codes.
Meta Description: PhonePe showcases UPI payments in Nepal through Fonepay QR, making cross-border digital payments easier for Indian visitors and local merchants.
Categories: Fintech, Digital Payments, Technology News, Nepal News
Tags: PhonePe Nepal, PhonePe UPI, UPI Payments in Nepal, PhonePe UPI Payments in Nepal, Fonepay, Fonepay QR, UPI Nepal, Digital Payments Nepal, Cross-Border Payments, NPCI International, NIPL, Nepal Digital Payment, India Nepal Payments, QR Payments Nepal, Cashless Payments, Nepal Fintech, UPI NPI Linkage, Nepal Clearing House
