Fonepay

What Fonepay does

Fonepay Payment Service Limited is Nepal's leading Payment System Operator (PSO), licensed by Nepal Rastra Bank and headquartered in Kathmandu (Pulchowk, Lalitpur). Founded in 2019 as a subsidiary of F1Soft Group, the company operates an EMV-compliant QR-based payment infrastructure connecting 64 banking and financial institutions, 2+ million merchant touchpoints across all 77 districts of Nepal, and end consumers transacting via partner bank mobile banking apps or Fonepay's own consumer app. The platform processes 2.5+ million daily transactions valued at NPR 15-20+ billion, giving Fonepay a 96% share of P2M QR transactions in Nepal.

The product suite centers on Fonepay QR (interoperable merchant payments, free below NPR 2,000), Fonepay Direct (NPR 10 interbank fund transfers), Fonepay Bills (utilities, education, EMI, government revenue), FoneTAG (offline NFC/CPQR payments via tokenization, up to NPR 5,000), the Fonepay Credit Card (Nepal's first fully virtual credit card issued with seven partner banks), and Nepal Now (prepaid card app for inbound tourists). Cross-border QR acceptance is live with India's UPI via NPCI International and UnionPay International, with broader connectivity through Alipay+. Supporting infrastructure includes the Fonepay Business App (merchant self-service), Fonepay Business Academy (training/enablement), and Fonepoints (loyalty rewards).

The business model is transaction-fee driven: a 0.6% merchant fee on QR payments above NPR 2,000 (capped at NPR 300), NPR 10 per interbank transfer when sender and receiver banks differ, small per-transaction fees on bill payments (NPR 2-10), and NPR 5 for instant settlement. Distribution follows a B2B2C channel-partner model in which acquiring banks provision merchant QR codes and embed payment functionality in their own mobile banking apps, complemented by direct-to-consumer self-serve apps for end users and merchants. The company holds ISO 27001 and PCI-DSS certifications and is preparing for an IPO within 2026 after shareholder approval in December 2025.

Name

Fonepay

Legal name

Fonepay Payment Service Limited

Website

https://fonepay.com

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

101–250 employees

Short description

Fonepay Payment Service Limited is Nepal's dominant Payment System Operator, running an EMV-compliant QR payment network connecting 64 banks, 2+ million merchants across all 77 districts, and end consumers via partner bank apps, processing 2.5M+ daily transactions.

Ownership category

akta.pro rank

Product category

Digital Payment Infrastructure

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232), Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320), Credit Card Issuing (522210)

SIC

Finance Services (6199)

akta.pro primary industry

QR Code Payments Wallets (FSAMAEAC)

akta.pro secondary industries

QR Code & Alternative In-Store Acceptance (QR, APMs) (FSAMADAH), Biller Direct EBPP Platforms (FSAMAJAA)

Keywords

• Digital payment infrastructure
• QR code payments
• Interbank fund transfers
• Utility bill payments
• Offline mobile payments

Headquarters

HQ city

Kathmandu

HQ country

Nepal

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Infrastructure, Personnel, Marketing or Sales, Operations

Revenue model

1. Merchant QR Transaction Fees: Fonepay charges merchants a 0.6% service fee per transaction for QR payments above NPR 2,000, with a maximum cap of NPR 300 per transaction. Transactions at or below NPR 2,000 are free for merchants.
2. B2B/BFI Interbank Fund Transfer Fees: Charges banks and financial institutions NPR 10 per interbank fund transfer transaction initiated by end users, where sender and receiver banks differ. Same-bank transfers are free.
3. Settlement Service Charges: Merchants can choose settlement options: free multi-session (3x daily), NPR 5 per instant settlement, or free on-request withdrawal. Charges are borne by merchants for non-default options.
4. Online Payment Service Fees (Bills): Fees charged to BFIs/customers for online payment services including education (NPR 10), KHANEPANI/KUKL (NPR 5), NEA electricity (NPR 5), EMI (NPR 10), CAPITAL (NPR 2) per transaction.
5. UPI India Cross-Border Acceptance Charges: Indian tourists can pay at Nepal merchants via UPI; applicable charges are deducted from the settlement amount credited to the merchant's account (specific rates set by acquiring institution).

Pricing tiers

Go-to-market motion2 records

Distribution channels9 records

Marketing channels10 records

Core offering

Fonepay operates Nepal's dominant interoperable QR-based digital payment infrastructure, licensed by Nepal Rastra Bank as a Payment System Operator. Its core offerings include EMV-compliant Fonepay QR for merchant scan-and-pay, Fonepay Direct for interbank fund transfers, Fonepay Bills for utility and government payments, FoneTAG for offline NFC payments, and a virtual credit card, all delivered through 64 partner banks' mobile banking apps and direct consumer/merchant applications.

Product overview

Fonepay operates as Nepal's leading Payment System Operator (PSO) licensed by Nepal Rastra Bank, offering a comprehensive digital payment ecosystem. The platform centers on Fonepay QR (EMV-compliant QR payments), Fonepay Direct (interbank fund transfers), Fonepay Bills (utility payments), Fonepay App (consumer mobile app), FoneTAG (offline NFC/QR payments), and Fonepay Credit Card (virtual credit solution). Supporting infrastructure includes Fonepay Business App (merchant management), Fonepay Business Academy (training), Fonepoints (loyalty rewards), and Nepal Now App (tourist-focused prepaid card and QR payments). The network connects 64+ banking and financial institutions, 2 million+ merchant touchpoints, and processes 2.5+ million daily transactions worth NPR 15+ billion, with cross-border partnerships spanning UPI India, UnionPay International, and Alipay+.

Differentiator

Problem solved

Functional benefit

Brands

• Fonepay QR: QR-based digital payment solution allowing users to scan and pay at merchant locations
• Fonepay Direct
• Fonepay Bills
• FoneTAG
• Fonepay Credit Card
• Fonepay Business App
• Fonepoints
• Fonepay Business Academy
• Nepal Now
• OnCard

Products and services

• Fonepay QR

Quantifiable outcome

• 96% market share in P2M QR transactions in Nepal
• +8 more outcomes

Named customers10 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

Feature9 records

Partnerships

19 partnerships are on record, tiered core and minor.

• Laxmi Sunrise BankcoreGTM or Marketing Partner · 19 June 2026Fonepay collaborated with Laxmi Sunrise Bank to launch the 'Cashback On with OnCard' campaign (June 19 – July 19, 2026), offering 30% instant cashback up to NPR 1,000 on Laxmi Sunrise Fonepay Credit Card (OnCard) transactions. The campaign also features zero joining fee and zero annual fee for the first year.
• Himalayan Bank Limited (HBL)coreTechnology or Integration · 24 April 2026HBL, Nepal's pioneer private commercial bank established in 1993, formally onboarded onto the Fonepay QR payment network in April 2026. HBL customers can now transact seamlessly across the Fonepay network upon completion of technical integration. The partnership combines HBL's three-decade trust and branch network with Fonepay's 2 million+ merchant touchpoints to accelerate digital payment adoption nationwide.
• Sazuna JewellersminorGTM or Marketing Partner · 1 March 2026Sazuna Jewellers is the jewelry giveaway partner in Fonepay's 'Sakshyam Naari' women empowerment campaign (March 1-31, 2026). Six winners from partner banks receive exclusive diamond jewelry sets, and 300 participants receive NPR 5,000 discount vouchers on purchases of NPR 100,000+.
• UnionPay InternationalcoreStrategic or Co-development Partner · 28 November 2025Fonepay signed a cross-border payment cooperation agreement with UnionPay International at its 2025 Global Partners Conference in Shanghai. Fonepay participates in UnionPay's Joint Initiative on Open Payments, committing to a connected global payment network under UnionPay's New Four-Party Model. This partnership enables cross-border QR payment connectivity between China and Nepal.
• NPCI International (India)coreTechnology or IntegrationFonepay has an integration with NPCI International to enable cross-border UPI payments, allowing Indian tourists to use UPI apps (Google Pay, PhonePe, Paytm) to scan and pay at Fonepay QR merchants in Nepal. A pilot rollout is underway with a small number of banks certified on both sides.
• Citizens Bank InternationalcoreChannel Partner/ Reseller/ DistributorCitizens Bank International is one of the partner banks issuing Fonepay Virtual Credit Cards to its customers through its mobile banking app, enabling scan-and-pay at any Fonepay QR merchant nationwide.
• Everest BankcoreChannel Partner/ Reseller/ DistributorEverest Bank is a partner bank issuing Fonepay Virtual Credit Cards through its mobile banking platform.
• Kumari BankcoreChannel Partner/ Reseller/ DistributorKumari Bank is a partner bank offering Fonepay Virtual Credit Cards and also received specialized Fonepay service training through Fonepay Business Academy for its staff across 36 branches in Koshi Province.
• Mahalaxmi Bikash BankcoreChannel Partner/ Reseller/ DistributorMahalaxmi Bikash Bank is one of the partner banks issuing Fonepay Virtual Credit Cards via its mobile banking app.
• Shine Resunga Development BankcoreChannel Partner/ Reseller/ DistributorShine Resunga Development Bank is one of the partner banks issuing Fonepay Virtual Credit Cards.
• Garima Bikash BankcoreChannel Partner/ Reseller/ DistributorGarima Bikash Bank is one of the partner banks issuing Fonepay Virtual Credit Cards.
• F1Soft Group (Parent)coreOthersFonepay Payment Service Limited is a flagship venture and subsidiary of F1Soft Group, Nepal's leading fintech company. F1Soft Group provides the organizational backbone and technology foundations for Fonepay.
• Nepal Rastra Bank (NRB)coreOthersFonepay is licensed by Nepal Rastra Bank (NRB) as a Payment System Operator (PSO), the regulatory authority overseeing Nepal's payment and settlement systems.
• KIST CollegeminorStrategic or Co-development PartnerFonepay Business Academy partnered with KIST College for a Digital Literacy Program as part of Global Money Week 2024, training 151 students across multiple bachelor's programs on digital payments and fraud prevention.
• FWEAN (Federation of Women Entrepreneurs Associations of Nepal)minorStrategic or Co-development PartnerFonepay Business Academy collaborated with FWEAN to conduct Digital Literacy Programs focused on empowering women entrepreneurs in Kathmandu with digital payment skills.
• FNCCI (Federation of Nepalese Chambers of Commerce and Industry)minorStrategic or Co-development PartnerFonepay Business Academy partnered with FNCCI-Birtamode and FNCCI-Sudur Paschim to conduct Digital Literacy Programs for FNCCI members, covering digital payment platforms, payment history, and online fraud prevention.
• Mahila Shakti Bikash Kendra Nepal (MSBKN)minorStrategic or Co-development PartnerFonepay Business Academy partnered with MSBKN for Digital Literacy Programs focused on women business owners across multiple locations (Janakpur, Lalitpur, Damauli, Kapilvastu), teaching digital payment skills and fraud prevention.
• Mithila Technical Academy, JanakpurminorStrategic or Co-development PartnerFonepay Business Academy partnered with Mithila Technical Academy in Janakpur to conduct a digital literacy program reaching 70 students, focusing on digital payment platforms and fraud awareness.
• NYEF (Nepalese Young Entrepreneurs' Forum)minorStrategic or Co-development PartnerFonepay Business Academy collaborated with NYEF to conduct a Digital Literacy Program at Birgunj Public College for 100+ bachelor-level students and young entrepreneurs.

Scale indicators14 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• eSewa: Nepal's leading homegrown digital wallet offering QR payments, bill pay, and fund transfers across BFIs. Direct competitor to Fonepay in the Nepali consumer P2M and wallet space, though Fonepay operates more as a network/PSO while eSewa is a wallet brand.
• Khalti: Nepal-based digital wallet and payment service covering QR payments, bill pay, and recharge. Operates BFIs as distribution partners and competes directly with Fonepay's wallet and merchant-acceptance offerings in Nepal.
• IME Pay: Nepali digital wallet owned by IME Group providing QR payments, fund transfers, and bill pay via partner BFIs. Competes with Fonepay across QR acceptance and consumer wallet use cases domestically.
• ConnectIPS: Nepal's interbank payment system operated by Nepal Clearing House (NCHL) providing real-time fund transfers and QR-style interoperability across BFIs. Most direct functional peer to Fonepay's interbank transfer and shared QR rails.

Broad incumbents

• NPCI (UPI): India's umbrella retail payments organization operating UPI, the world's largest interoperable QR payment network. Closest international model to Fonepay's PSO role and a partner via NPCI International for cross-border QR acceptance in Nepal.
• PhonePe: Indian QR-based digital payments super-app operating at scale across millions of merchants. Comparable in business model (interoperable QR + wallet + merchant acquisition) and relevant as a cross-border competitor via UPI rails connecting India to Fonepay merchants.
• Paytm: Indian QR payments pioneer offering consumer wallet, merchant acceptance, and bill pay. Architectural and product analog to Fonepay at larger scale; cross-border competitor via UPI QR acceptance at Fonepay merchants in Nepal.

Emerging players

• GCash: Philippines QR-payment super-app linking bank accounts, wallets, and merchants under one interoperable network. Highly comparable in PSO-style role and product breadth to Fonepay, useful benchmark for cross-border and interoperability potential.

Others

• UnionPay International: Operator of China's global card and QR network and direct Fonepay partner via 2025 cooperation agreement. Compares as a network/acceptance counterparty rather than head-to-head competitor, but represents the structural shape of QR interoperability at scale.
• Alipay+: Ant Group's global QR-acceptance network spanning Asia and Europe. Listed by Fonepay as a cross-border integration partner; functions as adjacent enabling infrastructure influencing Fonepay's interoperability strategy and competitive benchmarks.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/fonepay
• Facebookfacebook.com/fonepay
• LinkedInlinkedin.com/company/fonepaynepal

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Fonepay