eSewa vs Khalti vs Fonepay vs ConnectIPS: which should your business accept?
Compare eSewa, Khalti, Fonepay, and connectIPS for businesses in Nepal by fees, settlement times, customer reach, and setup requirements.
The Pasalos Team
July 13, 2026 · Updated August 3, 2026 · 4 min read
Nepali customers pay through wallets, mobile banking apps, bank transfers, and cash on delivery. No one digital option covers every buyer.
This guide compares eSewa, Khalti, Fonepay, and connectIPS on merchant fees, customer reach, settlement time, and setup work. Published fees and settlement terms can change by merchant agreement, so use the figures below for planning and confirm them with each provider.
1. eSewa: broad wallet reach
eSewa describes itself as Nepal's first digital wallet and reports more than 10 million registered users worldwide. Its long operating history makes it a familiar checkout option for many buyers.
- Customer base: broad wallet reach in Nepal.
- Merchant commission: often 1.5% to 2% per transaction, depending on the agreement and volume.
- Settlement time: commonly T+1, meaning the next business day.
- Setup: a registered business, PAN, business bank account, and merchant agreement are normally required.
For a general-purpose Nepali store, eSewa is usually the first wallet worth evaluating.
2. Khalti: another widely used wallet
Khalti is a fast-growing wallet known for its clean user interface, aggressive promotions, and strong adoption among younger demographics in Kathmandu and other major cities. In 2025, Khalti merged with IME Pay to operate as Khalti by IME, combining both user bases under one wallet.
- Customer base: Khalti and the former IME Pay user base, with more than 7 million users reported by the provider.
- Merchant commission: often 1.5% to 2% per transaction.
- Settlement time: commonly T+1.
- Setup: PAN, business registration, a bank account, and merchant verification are normally required.
Khalti is useful when customers ask for it or when your audience already uses the wallet. Ask its merchant team for current account requirements and setup terms.
3. Fonepay: QR payments from mobile banking apps
Fonepay is not a wallet; it is a payment network owned by F1Soft that connects nearly all mobile banking apps in Nepal. When a customer pays via Fonepay, they scan a QR code inside their own bank's app (e.g., Nabil, Global IME, NIC Asia), and the money moves directly from their bank account to yours.
- Customer base: users of participating Nepali banks and mobile banking apps. Fonepay reports more than 20 million registered customers across its network.
- Merchant commission: often lower than wallet rates, depending on the bank partner and merchant tier.
- Settlement time: instant or T+0 in many setups.
- Setup: a counter QR is relatively simple; adding Fonepay to website checkout takes a separate merchant integration.
Fonepay suits customers who want to pay from a bank app without first loading a wallet.
4. connectIPS: bank-to-bank payments
connectIPS is operated by the Nepal Clearing House (NCHL). It allows customers to link their bank accounts directly and perform high-value transfers at extremely low costs.
- Customer base: bank customers who have linked an account to connectIPS.
- Merchant commission: some merchant agreements use a small flat transaction fee, such as रु 2 to रु 8, instead of a percentage.
- Settlement time: T+0 or T+1, depending on the clearing cycle.
- Setup: bank verification and an NCHL integration are required.
The flat-fee structure can be useful for electronics, furniture, jewelry, and other high-value orders. Confirm the current fee with NCHL before comparing costs.
Merchant comparison
| Provider | Type | Reach | Typical merchant fee | Settlement time | Useful for |
|---|---|---|---|---|---|
| eSewa | Wallet | 10M+ Users | 1.5% - 2.0% | T+1 (Next Day) | General consumers |
| Khalti (by IME) | Wallet | 7M+ Users | 1.5% - 2.0% | T+1 (Next Day) | Young & urban buyers |
| Fonepay | Bank Network | 20M+ Users | 1.0% - 1.5% | Instant (T+0) | Direct bank payers |
| connectIPS | Bank Clearing | Bank holders | Flat रु 2 - रु 8 | Fast / T+1 | High-ticket items |
User counts checked July 2026 against each provider's own published figures (eSewa's 17th-anniversary announcement, Khalti by IME's site, Fonepay's about page); fee/settlement figures are unchanged from standard published merchant terms. Contact provider merchant sales teams for custom volume-based rates.
Which options should your business accept?
Offering two digital methods gives customers a fallback when their preferred wallet has no balance or a service is unavailable.
A customer who wants to pay with eSewa might abandon their cart if they only see a Khalti logo, and vice versa.
A practical starting mix
Start with the methods your customers request. For many stores, that means eSewa and Khalti for wallet users, Fonepay for mobile banking customers, and cash on delivery for buyers who do not want to prepay. If you are applying for your first merchant account, read our eSewa setup guide.
Setting up the checkout
Separate payment APIs each need credentials, redirect handling, server-side confirmation, and testing. The time and cost depend on your website and the provider's current documentation.
Pasalos displays eSewa, Khalti, Fonepay QR, connectIPS, and cash on delivery in checkout. You add the merchant credentials in the dashboard; the platform handles redirects and payment confirmations.