Nepal’s two leading digital wallets Khalti and IME Pay have decided to merge. The two entities reportedly signed a merger deal on Sunday, February 16, 2025. And it emerged that Nepal Rastra Bank (NRB) has given it’s approval for the agreement in principle.
An official close to the matter confirmed the merger. The source said that the companies have agreed to name the new platform “IME Khalti”.
After the merger, users of both Khalti and IME Pay will get their digital wallet services on one single app. So far, both companies have not provided much detail about this milestone deal. However, according to the source, more details regarding the merger will be available soon.
Nepal Rastra Bank (NRB)’s Payment and Settlement Bylaw 2077 has made arrangements for a digital wallet merger. Khalti and IME Pay are merging in accordance with the same provision.
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Khalti-IME Pay will merge and it’s a mega deal in the market
Khalti-IME Pay merger is huge and ambitious and it could significantly affect Nepal’s fintech market. Khalti and IME Pay are both leading digital wallets. But their merger creates an even bigger market player in one form. To illustrate, IME Khalti could become a top digital wallet in Nepal.
As of now, eSewa is Nepal’s top digital wallet in terms of user base. It has 8 million users. IME Pay and Khalti are said to have 5 million and 4 million users, respectively. So, by this account, IME Khalti will boast the largest customer base for any digital wallet in Nepal. Recently, Khalti reached 5 million downloads on Play Store. Its a testament to its huge popularity and acceptance among users.
Check out: Limit of digital payment/transaction in Nepal
NRB ‘approves’ of IME Pay and Khalti merger?
Nepal Rastra Bank (NRB) has given in-principle approval to digital wallets IME Pay and Khalti for the merger. This paves the way for the merger to take place legally.
A source close to the matter said, “The in-principle approval has been received from NRB. Now the remaining work will proceed.” The bank gave its approval after studying the two digital wallets’ application for a merger.
Now, as part of the process, both organizations will have to appoint an auditor to evaluate their respective assets, liabilities, and transactions and prepare a detailed valuation report (DDA). After that, both will have to sign a final agreement to merge.
This will be followed by them sending an application to NRB for a final approval. The regulations stipulate that integrated transactions must be completed within 30 days of the final approval by the National Bank.
When will IME-Khalti come into operation?
IME Khalti could start its operation in the next few months. NRB’s Payment and Settlement Bylaw 2077 states that after a merger, the new platform must perform its electronic transaction within a month. So, we might see IME Khalti coming live on the app store and allowing users to transact. It’s also possible that both companies update their respective app and change it to IME Khalti.
Conclusion
Khalti and IME Pay are the two leading mobile payment apps in Nepal. They are licensed payment service providers (PSPs) of Nepal. Their merger will make it Nepal’s largest digital wallet in IME Khalti. It will also give a major competition to eSewa which is currently the largest market player.
There are dozens of digital wallets in Nepal with only a few making it big. As Khalti and IME Pay merge, it’s likely to give Nepal’s fintech market a new dimension. So, it will be interesting to see how the market evolves when IME Khalti finally starts its active operation.
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What’s your opinion on Khalti-IME Pay merger? Is it going to disrupt the digital wallet market in Nepal? Do share your opinion in the comment section below.
