Kathmandu – Nepal’s digital payment industry is set for a major shake-up as are reportedly merging to create a unified platform, tentatively named “IME Khalti.” If this merger materializes, it will bring fierce competition to eSewa, the current market leader. This article explores the potential impact of this partnership on users and the digital wallet ecosystem.

Understanding Digital Wallets

A digital wallet is an electronic platform that securely stores payment details like credit cards and bank information, allowing users to make transactions conveniently. In Nepal, eSewa pioneered digital payments in 2009, and since then, multiple players like Khalti and IME Pay have emerged. These platforms enable users to pay bills, transfer money, and shop online with ease.

Why Digital Wallets Are Preferred Over Mobile Banking

While banks offer mobile banking apps, many users find digital wallets more efficient for daily transactions. Wallets provide features like instant transfers, lower fees, cashback offers, and no annual renewal costs. Additionally, unlike mobile banking, digital wallets allow seamless transactions between different platforms without extra charges.

Khalti and IME Pay Merger: What We Know So Far

Rumors suggest that Khalti and IME Pay signed a Memorandum of Understanding (MoU) on February 16, 2025, to merge into a single platform. Although an official confirmation is still awaited, the merger could create a 10-million-strong user base, surpassing eSewa’s 8 million users and challenging its market dominance.

How Will This Merger Benefit Users?

Nepal Rastra Bank reports that there are 18.9 million digital wallet users in Nepal. A combined IME Khalti platform would offer:

• Unified Services: Users can make all payments through a single app, improving convenience.
• Enhanced Remittance Services: IME Pay is a leader in remittances, and merging with Khalti’s advanced tech could streamline money transfers for migrant workers.
• Stronger Competition: eSewa has long dominated the market, but this merger could force all platforms to introduce better features, lower fees, and improve customer support.

Can eSewa Maintain Its Lead?

Despite the competition, eSewa remains the most trusted digital wallet in Nepal. It holds 80% of the market share, has 425,000+ merchants, and even offers cross-border payments with Indian platforms like PhonePe and Google Pay.

Additionally, eSewa’s partnerships with Nepal Airlines, its ability to withdraw cash via ATMs, and its planned IPO launch make it a tough competitor. However, IME Khalti’s lower fees and cashback offers could tempt users to switch.

What IME Khalti Needs to Do to Compete

To challenge eSewa, IME Khalti must focus on:

• Offering Lower Transaction Fees to attract cost-conscious users.
• Leveraging IME Pay’s Remittance Network to gain an edge in money transfers.
• Expanding Merchant Partnerships to match eSewa’s reach.
• Improving User Experience with a seamless and bug-free app.

Final Thoughts

While eSewa remains the dominant player, the Khalti-IME Pay merger could reshape Nepal’s digital payment landscape. It won’t be an overnight shift, but with strategic marketing, user-friendly features, and competitive pricing, IME Khalti could give eSewa a serious challenge. Now, all eyes are on the official announcement and app launch to see how this unfolds.