The shop owner across the street from yours probably has a laminated QR card sitting next to the till. The tea stall at the corner almost certainly does. And if you have noticed customers reaching for their phone instead of their wallet more often than they did two or three years ago, that shift is not going to reverse. According to Nepal Rastra Bank data, monthly QR-based payments in Nepal now exceed NPR 15 billion, up from under NPR 5 billion just a few years ago — a number driven almost entirely by small and medium merchants joining the digital payments network.
The good news for Nepali SMEs is that getting set up is dramatically simpler than most business owners assume. You do not need a POS machine. You do not need a separate card terminal. You do not need a large upfront investment. What you need is a valid PAN, a bank account, and about fifteen minutes to fill out an enrollment form. The system that ties everything together — called NepalQR, Nepal Rastra Bank's unified QR standard — means a single printed QR code on your counter can accept payments from eSewa, Khalti, every major bank's mobile app, and even Indian UPI apps used by tourists.
This guide walks through the three concrete steps every Nepali SME needs to take, explains the fee structure merchants actually face, gives practical tips for encouraging more customers to pay digitally, and covers the most common problems and how to solve them.
Step 1: Register with a PSP or PSO — Fonepay, eSewa, or Khalti
The first decision is which payment service provider (PSP) or payment system operator (PSO) to register with. The answer, for most Nepali merchants, is not "pick one" — it is "register with your bank for Fonepay first, then optionally add eSewa and/or Khalti as separate merchant accounts." Here is why that order makes sense.
Fonepay (via your existing bank)
Fonepay is Nepal's largest payment network, currently serving over 1.8 million merchant locations across the country. It is operated as a PSO under Nepal Rastra Bank's oversight and connects 64+ banking and financial institutions (BFIs). When a customer uses their NIC Asia, Global IME, Nabil, or almost any other Nepali bank's mobile app to scan a QR code, they are using Fonepay's rails underneath. This also extends to eSewa and Khalti users scanning a Fonepay-issued QR — the interoperability is built into the NepalQR standard.
To register as a Fonepay merchant, visit any Fonepay-supported bank's branch and ask for merchant enrollment, or use the Fonepay merchant enrollment form at fonepay.com. The bank handles the application on your behalf and issues your QR code after approval. This route is the most straightforward for existing account holders, since it links directly to your current business account — no need to open anything new.
eSewa Merchant
eSewa's merchant program is separate from the Fonepay bank route. Registering at merchant.esewa.com.np gives your business an eSewa merchant code and allows you to accept eSewa scan-and-pay directly. eSewa has over 40,000 scan-and-pay merchant partners and 15,000+ integrated API merchants. The eSewa merchant account is worth registering if your customers skew toward eSewa users — especially for payments above the typical QR scan amount, like school fees, event bookings, or higher-value retail purchases where eSewa's larger registered user base (18M+ users) matters.
Khalti Merchant
Khalti (now Khalti by IME, post-merger with IME Pay) runs its own merchant onboarding at khalti.com/merchant. Like eSewa, it gives you a separate merchant wallet and QR capability. Khalti is especially popular with younger, urban customers and has strong penetration in online services. For physical retail that primarily serves working-age urban customers, Khalti is worth adding as a secondary merchant account.
🔎 Which one should you start with?
Start with Fonepay through your bank — it gives you the widest interoperable coverage instantly. Then add eSewa Merchant for the largest wallet user base, and Khalti Merchant for the post-IME-Pay-merger remittance and urban user base. Most active small merchants in Nepal operate all three within the first year.
Step 2: Complete Merchant KYC and Get Your QR Code
After choosing your PSP, the KYC (Know Your Customer) process is the one step where preparation pays off. Requirements vary slightly between providers and registration methods, but the following covers what every application will ask for, regardless of whether you approach a bank branch, use an online form, or visit the PSP's office directly.
Documents you will need
| Document | Sole Proprietor | Partnership / Pvt. Ltd. |
|---|---|---|
| PAN Certificate | ✓ Required (IRD-issued) | ✓ Business PAN required |
| Citizenship Certificate | ✓ Proprietor's citizenship | ✓ All authorised signatories |
| Business Registration | Optional (if registered) | ✓ Company reg. certificate |
| Bank Account Details | ✓ Account number + bank name | ✓ Business account preferred |
| VAT Registration | If above VAT threshold | If above VAT threshold |
| Partnership Deed / MOA | Not applicable | ✓ Required |
Static QR vs Dynamic QR: which one do you need?
This is a question most guides skip over, and it matters for how you actually run your counter.
Static QR is a fixed code printed on a standee, card, or sticker at your counter. The customer scans it, types in the amount themselves, and confirms. This is the right choice for tea stalls, small retail, fruit vendors, pasal operators — any business where the transaction amount varies and the speed of scanning is the priority. It requires no internet at the time of scanning on your end (you just receive an SMS).
Dynamic QR is generated per-transaction by your merchant app or POS software. Each QR contains the exact amount for that bill — the customer scans and confirms without typing anything. This is the right choice for restaurants with digital billing systems, larger retail with a POS, or e-commerce businesses where amounts are predetermined. Fonepay offers a Dynamic QR service through its business app for merchants who want this functionality.
How long does approval take?
Fonepay merchant enrollment through a bank branch typically takes 2 to 5 working days once you submit complete documents. Online enrollment via the Fonepay merchant portal or through eSewa/Khalti's merchant portals can be faster for businesses with clean documentation. Your QR code is issued digitally — you can download and print it immediately after approval, or request a physical standee from the PSP.
Step 3: Display, Promote, and Reconcile Daily Transactions
Having a QR code is the first step — but many merchants sign up and then leave the QR tucked in a drawer or stuck in an invisible corner of the counter. The difference between a merchant who earns meaningfully from digital payments and one who barely uses it almost always comes down to how the code is displayed and whether the merchant actively promotes it to customers.
Displaying your QR effectively
Physical placement matters more than most people realise. The standard guidance, used by Fonepay's own merchant onboarding materials, is that a printed standee should be at least 10 centimetres wide, laminated for durability, and positioned at customer eye level — either on the counter or on a small freestanding holder. Placing it flat on the counter requires the customer to bend over and scan from above, which is uncomfortable and creates hesitation. A vertical standee at the payment point removes that friction entirely.
Print a backup QR as well. A laminated backup QR kept inside the counter means that if your displayed standee is damaged, water-stained, or goes missing, you can replace it without waiting for a new one from your PSP. The QR code itself does not change unless your merchant account details change.
Enabling and using SMS transaction alerts
Every PSP offers SMS notifications for successful transactions. Enable these on the mobile number linked to your merchant account. This is the most important operational step after displaying the QR — it means you do not need to look at your phone or app to confirm a payment. When a customer pays, your phone buzzes with the amount and transaction reference number. Before handing over goods or completing a service, glance at the SMS to confirm the amount matches what was expected.
One critical point: always verify via your own SMS, not the customer's screen alone. A fraudulent "success" screenshot is possible on jailbroken or modified devices — a real SMS to your merchant number is not. This is the number one verification practice for physical QR merchants.
Daily reconciliation
Log into your merchant dashboard (Fonepay Business App, eSewa Merchant portal, or Khalti Merchant portal) at the end of each business day to verify that total digital sales match your day's transaction SMS count. This takes five minutes and creates a clean record for tax purposes. Most merchant dashboards allow you to export transaction history as a CSV or PDF, which your accountant can work with directly — digital payments are self-documenting in a way that cash never is.
Settlement works as follows: for bank-linked Fonepay QR payments, funds typically settle to your bank account on a T+1 basis (next business day). For eSewa and Khalti wallet payments, the money lands in your merchant wallet first, from which you can initiate a bank transfer manually or set up automatic daily settlement — check your specific PSP's merchant settings for this option.
Merchant Fees Explained: What You Actually Pay
The fee structure for QR merchant payments in Nepal is straightforward but varies depending on the payment route. Here is a clear breakdown.
| Fee Type | Fonepay QR | eSewa Merchant | Khalti Merchant |
|---|---|---|---|
| Setup / Registration | Free | Free | Free |
| QR Printing (standee) | Free (via bank) | Download & self-print | Download & self-print |
| Per-transaction fee (MSF) | 0% (no fee) | ~1%–2% (negotiable) | ~1.5%–2.2% (negotiable) |
| Annual maintenance | Via bank (varies) | May apply | May apply |
| Bank settlement fee | Nil (direct to account) | Small transfer fee | Small transfer fee |
| High-volume negotiation | N/A (always free) | Down to ~0.5% | Down to ~0.5% |
Tips for Encouraging Customers to Pay Digitally
The most common merchant complaint after setting up QR payments is: "my regular customers still pay in cash." Behaviour change takes consistent, low-pressure nudges — here are the ones that actually work in Nepal's retail context.
Make the QR impossible to miss. A QR code that is visible only when a customer leans over the counter will be ignored. Display it at eye level, at the point where the customer naturally hands over money — typically on the far side of the counter facing the customer, or on a wall-mounted standee near the exit for restaurants.
Say it out loud, once. A simple "Fonepay garnu huncha" (Can use Fonepay) at the moment of payment is enough to remind customers who already have a wallet app but default to cash out of habit. You don't need a speech — one consistent prompt is enough to shift behaviour over weeks.
Offer a small, consistent digital-only benefit. This does not need to be a formal discount. Rounding a Rs. 47 bill to Rs. 45 for digital payments, or giving a small extra item for cashless transactions, creates a concrete reason for customers to switch. Market this on a small sign near your QR code.
Leverage your PSP's cashback campaigns. Both eSewa and Khalti run periodic cashback campaigns where customers earn rewards for paying at registered merchants. If you are a registered merchant, your store is automatically part of these campaigns. Make customers aware of this — put a simple note near your QR saying "Earn eSewa Fonepoints here" during active campaign periods.
Remove the change problem publicly. If your shop frequently runs low on change coins, a small sign that says "Digital payment = no change needed" connects a customer pain point (waiting for change, not having exact coins) to your solution in a way that feels helpful rather than promotional.
Troubleshooting Common Merchant Account Issues
Here are the most frequently reported problems from Nepali QR merchants, and their correct resolution steps.
Your QR Merchant Quick-Start Checklist
☐ PAN certificate obtained from IRD
☐ Citizenship and business registration documents ready
☐ Bank account open at a Fonepay-partner bank
☐ Fonepay merchant enrollment form submitted (via bank or fonepay.com)
☐ eSewa Merchant account registered at merchant.esewa.com.np
☐ Khalti Merchant account registered (optional but recommended)
☐ QR code printed at 10 cm+ wide, laminated, placed at counter eye level
☐ Backup QR printed and stored safely
☐ SMS transaction alerts enabled on merchant mobile number
☐ Daily reconciliation routine set up (5 min end-of-day check)
☐ Staff briefed on how to verify payments before handing over goods
The Bottom Line for Nepal's Small Merchants
Setting up QR payments as a Nepali SME is genuinely straightforward: register with Fonepay through your bank for the widest coverage at zero fee, add eSewa and Khalti merchant accounts for wallet-specific customers, complete the KYC documentation process, display your QR prominently, enable SMS alerts, and check your dashboard daily. The whole setup takes less than a week from first application to first payment.
The more important shift is cultural, not technical. The merchants who see meaningful adoption of digital payments are the ones who actively mention it, display the code visibly, and make the payment experience fast enough that customers prefer it to fumbling for exact change. Nepal's digital payment infrastructure — built on the NepalQR standard and supported by Fonepay's 1.8 million merchant network, eSewa's 18 million users, and Khalti's remittance-linked ecosystem — is one of the more robust in South Asia for a country at Nepal's income level. The plumbing is good. What remains is plugging your business into it.
Information in this guide is based on official Fonepay, eSewa, and Khalti merchant documentation and Nepal Rastra Bank payment system data as of 2026. Fee structures and document requirements can change — verify current requirements with your PSP or bank before applying.
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