Payment Gateways in Nepal 2026
Compare eSewa, Khalti, Fonepay, connectIPS and NEPALPAY QR for Nepal merchants. Understand checkout, QR, verification, fees and onboarding.
Payment Gateways in Nepal 2026: Five Merchant Payment Options Compared
Quick answer: For a physical shop, a bank-issued interoperable QR may be the simplest starting point. For an online store, a merchant checkout integration with verified payment status is often more appropriate. For a larger business collecting from multiple bank accounts, a bank-linked gateway or payment infrastructure may be relevant. eSewa ePay, Khalti, Fonepay QR, connectIPS and NEPALPAY QR are not identical products, so a fair comparison starts with the merchant's use case rather than a universal ranking.
The Nepal Rastra Bank Payment Systems Department licenses and oversees payment service providers and payment system operators. The published NRB licensee list provides an official reference but is dated; confirm the latest status before signing a merchant agreement. A payment integration intermediary is not automatically a licensed PSP or PSO merely because it advertises support for regulated payment rails.
Five documented options for Nepal merchants
| Option | Primary merchant use | Onboarding or integration evidence | Main caution |
|---|---|---|---|
| eSewa ePay | Online checkout for customers using eSewa | Official ePay V2 documentation and merchant flow | Verify server-side status and signed response |
| Fonepay QR | In-person QR acceptance; dynamic QR options | Bank-based enrollment and merchant information | Confirm bank terms, reconciliation and any applicable charges |
| Khalti merchant gateway | Online merchant checkout with supported instruments | Official merchant page and developer resources | Confirm current product, fees and supported checkout methods |
| connectIPS | Bank-account-based online payments and gateway collections | NCHL describes merchant/creditor gateway use | Onboarding may involve participating bank and NCHL process |
| NEPALPAY QR | Static/dynamic QR and merchant acquiring | NCHL directs merchants to participating banks | Actual acceptance and features depend on bank/app participation |
These are five service routes, not five equivalent competing wallet apps. The table is not ordered by quality, popularity, merchant count or transaction cost. Do not interpret it as a Top 5 performance ranking.
How this comparison was assembled
Eligibility required a publicly documented merchant payment use case, an identifiable primary operator or provider, and an official explanation of how merchants can accept payment. We compared the merchant acceptance layer rather than every consumer wallet. The relevant pool also includes bank proprietary QR, POS/card acquiring, SmartChoice systems, other licensed PSPs and third-party orchestration software. Those alternatives are discussed below but not scored without equivalent current merchant documentation.
The main criteria are payment instrument coverage, onboarding requirements, integration method, server-side verification, settlement visibility, refunds, reconciliation, support and total contract cost. Ratings Nepal did not conduct merchant onboarding, fee negotiations or a production transaction test.
eSewa ePay: checkout for wallet customers
eSewa's official ePay V2 documentation describes a merchant-initiated transaction, redirect to the payment flow, response verification and a transaction status check. It specifies signing and verification concepts. For a developer, this is more useful than a blog claiming integration is “one click.”
The important operational rule is never dispatch goods solely because a browser returns to a success URL. A redirect can be interrupted or manipulated. Your server should verify the transaction against the official gateway, match the order ID and amount, and prevent duplicate fulfillment. Keep payment keys on the server, not in public JavaScript.
Ask eSewa for the current merchant agreement, settlement timing, refund process, dispute handling, sandbox access and any fees. The public documentation does not establish one universal merchant rate for every business.
Khalti merchant gateway: another online checkout route
Khalti's merchant page describes online acceptance and provides links to gateway developer materials. Its listed payment instruments and branding may evolve. Do not assume a consumer-wallet promotion also applies to a merchant contract. Confirm which instruments are enabled for your merchant account, not merely advertised in a general brochure.
For a web shop, compare the API documentation, sandbox support, transaction status API, webhooks if available, reconciliation exports and refund workflow. Ask what happens when the customer pays but the merchant callback fails. Test that failure case before going live.
Fonepay QR: merchant acceptance through banks
Fonepay's business page instructs merchants to approach a participating bank or use the enrollment route. Its merchant enrollment page requests business and contact information. Static QR can suit a small counter, while dynamic QR can associate an amount or bill with a particular sale.
Fonepay's public business FAQ describes QR acceptance as fee-free for merchants; treat that as the provider's current public statement, not a guarantee that every bank, channel or value-added service has no charges. Confirm the bank's applicable terms in writing. For cashiers, a payment screenshot is not proof of settlement: check the merchant app or bank ledger before handing over high-value goods.
connectIPS: bank-linked gateway
NCHL's connectIPS FAQ explains that connectIPS links bank accounts and operates as a gateway at merchant checkouts. It is not simply another stored-value wallet. It can be useful for customers who prefer bank-account-based payments and for businesses that already reconcile bank transactions.
Ask your bank or NCHL about the applicable creditor/merchant enrollment, technical documentation, settlement reports, refund workflow and transaction limits. Do not copy a transfer limit from an unrelated consumer channel and present it as the limit for your merchant integration.
NEPALPAY QR: interoperable QR route
NCHL's NEPALPAY QR page describes static and dynamic QR, merchant acquiring and interoperability. NCHL says merchants obtain the service through their bank. The actual customer app coverage and bank onboarding process should be verified for your merchant category and location.
If you run a restaurant or retailer, compare whether the acquiring bank offers a dashboard, daily transaction report, refund support, multiple outlets and cashier-level access. For online orders, confirm whether a supported payment gateway exists for your particular checkout rather than assuming a static QR image can provide automatic order reconciliation.
Merchant acceptance matrix
| Merchant need | More natural starting point | Evidence to request |
|---|---|---|
| Tea shop or retail counter | Bank-issued Fonepay or NEPALPAY QR | Merchant QR enrollment, settlement account, reconciliation |
| Small online store | eSewa or Khalti merchant checkout | API docs, test credentials, signed status verification |
| Online payments directly from bank accounts | connectIPS gateway | Merchant/creditor onboarding and technical agreement |
| Billing system or POS integration | Dynamic QR through participating bank | POS integration scope, transaction references, refund rules |
| Multi-instrument online checkout | Direct integrations or contracted orchestration | Licensing/role, data handling, each underlying merchant account |
| Multi-branch business | Acquiring bank plus reconciliation tools | Outlet reporting, role controls, settlement and exception reports |
A business can use more than one payment option. Offering multiple choices is not always better: each integration creates support, accounting and dispute complexity. Start with the channels customers actually use and expand only when the business case is clear.
How much does a payment gateway cost in Nepal?
There is no defensible single fee for every merchant, payment method and contract. The cost can include onboarding, a transaction fee or discount rate, settlement charges, refund costs, bank fees, hardware, gateway integration, support and reconciliation software. Fees can change and can differ by merchant volume, product type and acquiring bank.
| Fee category | Ask this exact question |
|---|---|
| Setup | Is onboarding or API activation charged? |
| Transaction | What percentage or fixed charge applies to each instrument? |
| Settlement | When and to which account is the money settled? |
| Refund | Who initiates it, how long does it take and is there a fee? |
| Chargeback or dispute | Who bears loss and what evidence is required? |
| Tax | Is the quotation tax-inclusive and will a tax invoice be issued? |
| Reporting | Can we export transaction IDs, amounts and settlement batches? |
Request the merchant-specific written schedule, not a screenshot from a forum. Check that the payment provider or acquiring bank matches the contracting entity and that bank-account details are verified independently.
Integration and fraud prevention checklist
- Register the business and confirm the required PAN/VAT status. Read our company registration guide.
- Select the merchant use case: counter QR, hosted checkout, bank payment or POS.
- Check the provider's identity and regulatory role using NRB and the latest licensee information.
- Obtain a written merchant agreement and a full charge schedule.
- Use official documentation and test credentials; never use credentials copied from an unrelated site.
- Generate order IDs on the server and reject duplicate processing.
- Validate transaction status and amount with the official provider before fulfillment.
- Reconcile daily transactions against actual bank settlement, not just the order dashboard.
- Document failed payments, duplicate debits, refunds and customer complaints.
- Protect API secrets, customer details and audit logs; restrict staff access by role.
What about unified payment gateway intermediaries?
Some companies advertise one API connecting eSewa, Khalti, Fonepay and other rails. A unified interface may reduce developer work, but it creates an additional dependency. Before signing, ask who legally receives the money, whether the merchant uses its own provider credentials, who performs KYC, who holds customer data, and whether the intermediary has any required authorisation. Compare its claim against the NRB payment systems framework. Do not assume that an integrator is itself a regulated payment service provider.
Frequently asked questions
Which payment gateway is best for a Nepali e-commerce website?
Choose based on your customers, payment methods, technical stack, support and written costs. eSewa and Khalti provide documented merchant checkout routes; connectIPS offers a bank-linked gateway. Test the actual integration before deciding.
Is Fonepay the same as eSewa?
No. Fonepay operates a payment network and QR acceptance infrastructure, while eSewa provides a wallet and merchant checkout services. Their legal and technical roles differ.
Can a merchant accept payments with only a QR standee?
Many small businesses can begin with a bank-issued QR. For automatic e-commerce fulfillment, you need a reliable order-to-payment reconciliation method and confirmed status, not a screenshot.
Does every business need a payment gateway API?
No. A physical retailer may need only a properly enrolled QR acceptance route. A web store usually benefits from a gateway integration that associates payment status with each order.
Are merchant QR payments always free?
Do not assume so. Check the latest agreement and bank terms for your specific service, channel and value-added features.
What should I do if a customer says payment succeeded but my dashboard disagrees?
Do not collect a second payment automatically. Compare transaction reference, amount and time, query the provider's status through an official channel and contact support. Keep a written record and avoid disclosing private account data publicly.
Editorial methodology and disclosure
This is a non-paid comparison of documented merchant routes. Providers were not scored for uptime, merchant acceptance, fees, settlement speed or customer satisfaction because comparable independent evidence was not available. Provider descriptions were cross-checked against their own documentation and the NRB/NCHL framework where relevant. This is not a complete inventory of every PSP, PSO, bank or POS vendor.
Have you used a merchant gateway in Nepal? Share a genuine review through Ratings Nepal, describing onboarding, settlement, reporting and dispute support. Do not post payment credentials, customer details or transaction screenshots with personal information.
Primary sources and review date
Nepal Rastra Bank Payment Systems Department; NRB published licensee list; eSewa ePay V2 documentation; Khalti merchant page; Fonepay business enrollment; NCHL connectIPS FAQ; NCHL NEPALPAY QR. Reviewed 27 October 2026. Confirm current commercial terms and licensing before contract execution.