How to Accept Online Payments in Nepal: eSewa, Khalti, and Cards
Getting paid is the core of any online store, and Nepal now has a growing set of reliable payment options. Digital wallets dominate everyday transactions while card payments and bank transfers handle larger purchases. Setting up the right mix of payment methods directly affects your conversion rate. Here is what you need to know about each option.
eSewa: Nepal's Most Popular Digital Wallet
eSewa has the largest user base among Nepal digital wallets with millions of active accounts. To accept eSewa payments on your store, you need a merchant account. The application requires your business PAN, company registration documents, and a bank account. Approval typically takes three to seven business days. eSewa charges a transaction fee of around 1.5 to 2 percent per transaction depending on your merchant agreement. An official WooCommerce plugin is available and well-maintained.
Khalti: The Growing Competitor
Khalti is eSewa's main competitor and is popular among younger urban users. Merchant onboarding requires similar documentation to eSewa. Khalti's transaction fees are competitive and its developer documentation is well-regarded. If you are building a custom store rather than using WooCommerce, Khalti's API is considered easier to integrate than eSewa's. Accepting both wallets is the standard for any serious Nepal online store.
ConnectIPS: Bank Transfer for Larger Purchases
ConnectIPS is operated by Nepal Clearing House and allows direct bank transfers from any Nepali bank account. It is particularly useful for higher-value purchases where customers prefer not to keep funds in a wallet. Integration requires merchant registration with Nepal Clearing House. ConnectIPS is less common as a standalone option but pairs well with wallet payments to cover all buyer preferences.
Card Payments: Visa and Mastercard
For card payments, you need a payment gateway that supports Nepal merchant accounts. Banks like NIC Asia, Nabil, and Kumari Bank offer payment gateway services. Stripe and PayPal are available for international transactions if you have a foreign business entity, but they cannot be used with a Nepal-only business registration for domestic transactions. Domestic card payments typically incur fees of around 2 to 3 percent per transaction.
Cash on Delivery: Still Essential
Do not underestimate cash on delivery. Many Nepal online shoppers, especially outside the Kathmandu Valley, are not comfortable paying online before receiving goods. Offering COD removes hesitation and can meaningfully increase order volume. The tradeoff is higher return rates since customers can refuse delivery. Many stores add a small COD fee of NPR 20 to 50 to offset partial return risk.
Displaying Payment Options Clearly
Show accepted payment method logos prominently on your product pages and at checkout. Customers who do not see their preferred payment method listed often abandon the cart. A simple row of eSewa, Khalti, card, and COD icons builds confidence and reduces checkout abandonment significantly.
Testing Before Launch
Both eSewa and Khalti offer sandbox testing environments. Test every payment flow before going live. Check that successful payments update order status correctly in WooCommerce or your custom backend. Test a refund flow as well since failed payment handling is a common source of customer complaints in Nepal online stores.
Frequently Asked Questions
How long does it take to get approved for an eSewa merchant account in Nepal?
Typically three to seven business days after submitting complete documents including your business PAN, company registration, and bank account details. Incomplete applications take longer.
Can I use Stripe or PayPal for my Nepal online store?
Stripe and PayPal do not support Nepal merchant accounts for domestic transactions. They are usable if you have a foreign business entity. For Nepal domestic payments, eSewa, Khalti, and bank-issued payment gateways are the standard options.
Should I charge extra for cash on delivery orders in Nepal?
Many Nepal online stores add a small COD fee of NPR 20 to 50 to offset logistics costs and reduce frivolous orders. Be transparent about any COD fee during checkout to avoid cart abandonment.
Need Help Integrating Payment Gateways on Your Nepal Store?
Nxtech sets up eSewa, Khalti, and card payments on WooCommerce and custom stores across Nepal.