Nepal Opens Doors for International Payment Service Companies

The government has submitted a bill to parliament to amend the Payment and Settlement Act of 2018, allowing international companies such as PayPal, Visa, and MasterCard to operate in Nepal. If passed, the bill is expected to enhance competition in the Nepali payment system, reduce transaction fees, and provide customers with higher quality services, officials from the central bank have stated. The bill outlines provisions including the application process for foreign companies, digital financial services, pilot testing, liquidity facilities, and a dispute resolution committee. Kathmandu, 18 Bhadra.

The government is advancing the process to permit international companies offering payment services to operate in Nepal. On Thursday, the Ministry of Finance submitted the amendment bill to parliament. The bill includes provisions allowing foreign payment service providers to obtain authorization to work within Nepal. Central bank officials have indicated that should the lawmakers approve the bill as is, without amendments, international payment institutions such as PayPal, Visa, and MasterCard will be able to secure licenses to provide their services domestically.

With the entry of international companies, competition in Nepal’s payment system will increase, making it possible for customers to access excellent services at lower fees. A central bank official remarked, “This will resolve issues faced by exporters and freelancers who have been unable to receive funds through PayPal.” The bill also stipulates that members appointed as expert directors to the National Payment Board must hold at least a postgraduate degree in economics, monetary affairs, finance, management, information technology, or commercial law, and have a minimum of five years of experience.