WeChat Pay, the Chinese payment giant has got permissions from Nepal Rastra Bank (NRB) to start its payment services officially in Nepal. So, from now on each transactions made in Nepal through the WeChat Pay will go in a legal procedure and NMB bears the responsibilities for the settlement of those transactions.
Though it is now legalized in Nepal, but still no transactions had been made through it. This is possibly caused due to the corona pandemic as no Chinese visitor has recently travelled to Nepal.
As per the source, there are still few technical issues that need to be settled. As soon as those issues will be settled down another Chinese payment giant, AliPay will also get permission from Nepal Rastra Bank to make the transactions from Nepal.
Why is WeChat Pay authorised to start its payment services in Nepal??
According to the Nepal’s Department of Immigration, in 2019 and 2020 Nepal received the second largest number of tourists from China after India.
Indian currency is accepted in Nepal, so they can spend freely as per their wish but the same doesn’t happen with Chinese tourist.
Also, since this app is really popular among Chinese people it was used illegally by Chinese visitors during thier presence in Nepal. As the app was not registered at that time, it bypassed the tax network of Nepalese government.
So by legalising this WeChat Pay in Nepal, government can now raise the tax from it. Also, it will allow the Chinese tourist to expend freely. This will ultimately flourishes the tourism in nepal. May be it will also help to establish a good business relationship bettwen Nepal and China.