Payment Gateway Integration in Nepal: eSewa, Khalti, Fonepay — A Developer’s Guide

Nepal’s digital payment landscape has transformed. With digital payments hitting NPR 98.43 trillion in FY 2024/25 — a 71% growth year-over-year — accepting online payments is no longer optional for serious Nepali businesses. Whether you’re building an e-commerce store, a booking platform for your hotel, or a service business accepting online deposits, choosing and integrating the right payment gateway in Nepal directly impacts your conversion rates, transaction costs, and customer experience.

This guide from NepTechPal covers everything you need to know about eSewa, Khalti, Fonepay, and other Nepali payment options.

Which Payment Gateways Are Available in Nepal?

Nepal has six major digital payment gateways: eSewa (largest user base), Khalti (best developer experience), Fonepay (bank interoperability), IME Pay (remittance integration), ConnectIPS (bank-to-bank), and various bank-specific mobile banking apps.

Gateway Comparison

Gateway	Users	Setup Fee (NPR)	Transaction Fee	Settlement Time	API Quality
eSewa	8M+ (largest)	~25,000	1-2%	1-3 business days	Good
Khalti	Growing rapidly	~20,000	1-2%	1-3 business days	Best documentation
Fonepay	Bank network	~25,000	1-2.5%	1-2 business days	Good
IME Pay	Growing	Free API	Variable	1-3 business days	Good
ConnectIPS	Bank users	Free API	Variable	Same day – 1 day	Moderate
Prabhu Pay	Growing	Free API	Variable	1-3 business days	Moderate

eSewa — The Market Leader

Best for: Maximum customer reach in Nepal

eSewa is Nepal’s largest digital wallet with 8+ million users and 150,000+ merchants. It’s the payment gateway most Nepali consumers recognize and trust.

Pros:
– Largest user base — most Nepalis already have eSewa
– Well-established brand trust
– WooCommerce plugin available
– Mobile and web payment support

Cons:
– API documentation could be more detailed
– Setup fee (NPR ~25,000)
– Customer support response times vary

Khalti — Best Developer Experience

Best for: Developers wanting clean API integration

Khalti has emerged as the developer-friendly alternative with excellent API documentation, clean SDKs, and responsive technical support.

Pros:
– Best API documentation among Nepali gateways
– Clean, modern SDK
– Good developer support
– Growing user base
– Merged with IME Pay ecosystem

Cons:
– Smaller user base than eSewa (but growing)
– Setup fee (NPR ~20,000)

Fonepay — Bank Interoperability

Best for: Accepting payments from any bank app

Fonepay connects to Nepal’s banking network, allowing customers to pay via any bank’s mobile banking app through QR codes or direct transfer.

Pros:
– Interoperable — works across banks
– QR-based payments (popular in Nepal)
– NRB (Nepal Rastra Bank) licensed
– Over 47 million QR transactions in recent period

Cons:
– More complex integration
– Setup fee (NPR ~25,000)
– Less suited for small online transactions

How Do I Integrate a Payment Gateway into My Website?

Integration follows four steps: obtain merchant credentials from the gateway provider, install the SDK or plugin on your website/app, configure payment flow (redirect or embedded), and test thoroughly in sandbox mode before going live.

Integration for WordPress/WooCommerce

eSewa integration:
1. Apply for eSewa merchant account (provide business registration, PAN)
2. Receive merchant credentials (merchant code, secret key)
3. Install eSewa WooCommerce plugin from WordPress repository
4. Configure plugin with your credentials
5. Test with eSewa sandbox environment
6. Go live after verification

Khalti integration:
1. Register at merchant.khalti.com
2. Get API keys (public key, secret key)
3. Install Khalti WooCommerce plugin
4. Configure with API keys
5. Test in sandbox mode
6. Submit for live verification

Development time: 1-3 days per gateway for experienced developers

Integration for Custom Applications

For custom Laravel, Next.js, or mobile apps:

1. Review API documentation — eSewa and Khalti both provide REST APIs
2. Implement payment initiation — Send payment request with amount, reference ID, and callback URLs
3. Handle redirect — User completes payment on gateway’s page
4. Process callback/webhook — Receive payment confirmation
5. Verify payment server-side — Always verify payment status via API (never trust client-side callbacks alone)
6. Handle success/failure — Update order status, send confirmation email/SMS

Security considerations:
– Never expose secret keys in frontend code
– Always verify payments server-side
– Use HTTPS for all payment endpoints (SSL is mandatory)
– Implement idempotency for webhook handling (prevent duplicate processing)
– Log all transactions for reconciliation

Aggregator Option: API Nepal

For businesses wanting to integrate multiple gateways simultaneously, aggregator services like API Nepal provide a single integration point that connects to eSewa, Khalti, Fonepay, and other gateways — reducing development time by 60-70%.

How Much Does Payment Integration Cost?

Total payment gateway integration costs NPR 50,000-150,000 including merchant account setup, development, and testing — plus ongoing transaction fees of 1-2.5% per transaction.

Cost Component	Amount (NPR)
Merchant account setup (per gateway)	0 – 25,000
Development/integration	30,000 – 100,000
Testing and QA	10,000 – 25,000
Transaction fees (ongoing)	1-2.5% per transaction
Annual maintenance	10,000 – 25,000

Recommendation: Integrate at minimum eSewa + Khalti + COD (Cash on Delivery). This combination covers the widest customer base. Add Fonepay if you want to accept bank-direct payments.

Budget-saving tip: If using WooCommerce, plugins exist for both eSewa and Khalti — integration can be done in hours instead of days, reducing development costs significantly.

Should I Accept Cash on Delivery (COD)?

Yes — approximately 80% of e-commerce transactions in Nepal still use COD. Refusing COD means losing the majority of potential customers, but managing COD requires operational planning for returns and cash handling.

COD management best practices:
1. Confirm orders by phone before dispatch (reduces fake orders by 30-50%)
2. Offer incentives for online payment (NPR 50-100 discount, free shipping)
3. Set COD limits (no COD above NPR 10,000 — require partial advance)
4. Track COD return rates and blacklist repeat returners
5. Budget for 15-30% COD return rate in your pricing model

What About International Payments?

For tourism businesses serving international guests, integrate international payment options alongside Nepali gateways: Stripe (via partner banks), PayPal (limited in Nepal), or bank card processing through Himalayan Bank, NIC Asia, or other licensed acquirers.

International Option	Availability	Fees	Best For
Bank card processing (Visa/Mastercard)	Via licensed acquirer banks	2.5-3.5%	Hotels, tourism, e-commerce
Stripe (via partners)	Available through some banks	2.9% + fixed fee	International e-commerce
PayPal	Receive only (limited)	3.5-4.5%	Freelancers, digital services
Wire transfer	Always available	Bank fees (variable)	Large B2B transactions

For Pokhara tourism businesses: Accept Visa/Mastercard for international guests alongside eSewa/Khalti for domestic bookings. NepTechPal can set up multi-gateway payment systems that automatically detect customer location and show appropriate options.

What the Community Is Asking

“Which payment gateway should I integrate for a Nepali website?” Start with eSewa (largest user base) + Khalti (good UX and growing) + COD. This combination covers 95%+ of your potential customers. Add Fonepay and card processing based on your business type.

“How long does merchant account approval take?” eSewa: 3-7 business days. Khalti: 2-5 business days. Both require business registration documents and PAN. Individual/freelancer accounts have different (sometimes faster) processes.

“Is it safe to accept online payments on my website?” With proper SSL certification, server-side payment verification, and adherence to gateway security guidelines — yes, absolutely. Payment gateways handle the actual financial transaction, so sensitive card/wallet data never touches your server.

“Can I integrate payments into a mobile app?” Yes. Both eSewa and Khalti provide mobile SDKs for Flutter and React Native apps. Integration follows similar patterns to web but uses native SDK methods for a smoother in-app experience.

How NepTechPal Can Help

NepTechPal has integrated eSewa, Khalti, Fonepay, and international payment options into dozens of websites and mobile apps for Nepali businesses. We handle the complete integration process — merchant account application, development, testing, and go-live verification — ensuring your payment system is secure, reliable, and user-friendly.

Integrate payment gateways with NepTechPal

Frequently Asked Questions

Can I accept eSewa and Khalti without a business registration?

Individual/personal merchant accounts are available with limited features. For full merchant accounts with higher transaction limits and business features, business registration and PAN are required.

What happens if a payment fails midway?

Proper integration handles this gracefully: the customer is informed of the failure, their money is not deducted (or is automatically refunded), and they can retry. NepTechPal implements robust error handling and timeout management in all payment integrations.

How are transaction fees calculated?

Most Nepali gateways charge a percentage of each transaction (1-2.5%). On a NPR 5,000 transaction at 2% fee, you receive NPR 4,900. Fees vary by transaction volume — higher volumes often qualify for lower rates.

Can NepTechPal help with payment reconciliation?

Yes. We build admin dashboards that track all payment transactions across gateways, making reconciliation with your accounting system straightforward. This is especially important for businesses using multiple payment gateways simultaneously.

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Need payment integration for your website or app? NepTechPal handles eSewa, Khalti, Fonepay, and international payments. Get a free consultation at neptechpal.com.np

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Related Articles:
– E-Commerce Website Development in Nepal
– Website Security in Nepal: SSL and Protection
– How to Launch an Online Store in Nepal