NCHL launches NepalPay Card and National Card Switch Globally

The Nepalese FinTech industry might not be doing huge wonders lately, but things are getting better as time passes. NCHL launched the National Card Switch and the NepalPay Card a few months ago, and both have now gone global, which is a feat for the Nepalese FinTech scene. Here in this article, I'll break down what this global expansion means for users, banks, and the country’s digital payment future.

NepalPay Card and National Card Switch Global Launch Overview:

Before heading into the main news, let's first learn about NepalPay Card and National Card Switch.

What are NepalPay Card and National Card Switch?

Essentially, a payment switch is a software system that connects different payment channels with financial institutions to route electronic transactions. In simple terms, it acts as a middleman between payment gateways and banks. Similarly, a card payment switch handles this process specifically for all card-based transactions. National Card Switch is Nepal's domestic system for routing and settling card transactions within the country.

At present, Nepalese BFIs (Banks and Financial Institutions) rely on payment switches operated by foreign networks such as Visa, Mastercard, and UnionPay. This is why most debit and credit cards issued in Nepal carry international branding. As a result, card transactions are routed through non-domestic intermediaries, with routing and operational fees flowing outside the country. These higher costs are ultimately passed on to customers through annual card charges and related fees.

Then came the NepalPay Card, Nepal's own card service, similar to Visa, Mastercard, and the Debit/Credit cards we have used for many years. This service was launched in Chaitra 2081, alongside the National Card Switch. Under this domestic card scheme, customers can access services such as debit, credit, prepaid, and virtual cards. All card processing and routing take place on domestic servers, eliminating the need to route transactions through international networks such as Visa and Mastercard.

Currently, 34 BFIs (Bank and Financial Institutions) have signed agreements with NCHL as members of the National Card Switch and NepalPay under the National Payment Switch.

Global launch

Both the National Card Switch and theNepalPay Card have gone global. Yes, you heard that right: it's now live in over 190 countries, marking its first international launch. NCHL has partnered with Discover Network, a major international payment network based in the United States, to expand its global reach.

Neelesh Man Singh Pradhan, Chief Executive Officer of NCHL, stated, “Our collaboration with Discovery Networks demonstrates our dedication to offering a secure, reliable, and globally accepted payment card scheme with international recognition."

Subhrajit Basu, Vice President of International Markets at Discover, stated, “Our partnership with NepalPay will enhance our expansion and service offerings in the Asia-Pacific. Merchants and cardholders will benefit from reliable and secure payment options with each transaction.”

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This means Nepal's card can be used at ATMs and POS terminals worldwide. That's not all. Through its network alliances and Diners Club partnerships, Nepali merchants gain access to payments from over 378 million cards. 

Global launch of NepalPay Card and National Card Switch: My two cents

This is a feat for Nepalese FinTech. Cause' Nepal has long been relying on foreign card and payment switches, taking a whole lot of fees outside our country. Once all Nepalese banks adopt NepalPay, the use of a domestic card switch will also reduce overall operational and card fees. In this way, it will be a win-win for both BFIs and customers. 

Additionally, the international launch could pave the way for billing in Nepali Rupees (NPR) on App Stores and for in-app purchases, provided the respective App Stores formally onboard NepalPay cards and NRB and banks allow recurring cross-border digital payments. 

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