WeChat, the Chinese multi-purpose messaging, social media, and mobile payment service developed by Tencent, has made its long-awaited entry into Nepal. The popular app has recently obtained permission to operate its electronic transactions within the country. However, this comes after a period of uncertainty when both WeChat and Alipay were declared illegal by Nepal Rastra Bank, the central bank of Nepal.
Since its initial release in 2011, WeChat has grown to become one of the world’s largest standalone mobile apps, boasting over a billion monthly active users globally. However, the majority of its user base consists of Chinese speakers. Now, WeChat transactions in Nepal will be facilitated and regulated by NMB Bank. Nepal Rastra Bank has granted exclusive permission to NMB Bank to handle all financial transactions in the country, although there is little clarity on whether this includes digital-only, electronic-only, or both types of transactions.
Due to legal considerations and procedural formalities, it may take some time before WeChat payments, or WeChat Pay as it is commonly known, become fully operational in Nepal. It is also possible that other banking institutions may apply for and receive permission to facilitate WeChat Pay transactions in the country.
WeChat Pay is particularly popular among Chinese tourists, and its usage is prevalent in the hospitality industry, including restaurants and hotels in popular tourist destinations such as Pokhara, Thamel, and Lumbini.
With the legalization of WeChat payments, Nepal is expected to witness an increase in foreign currency transactions, as these electronic transactions will now be linked and processed through Nepali banking systems. The introduction of more payment options will undoubtedly contribute to the growth of businesses in the country. This initiative by Nepal Rastra Bank to enhance e-commerce, tourism, and electronic payments is a significant step forward, albeit slightly delayed, and is expected to have a positive impact on the economy.
