Kathmandu, Nepal June 1, 2019 Chinese digital wallets, WeChat Pay and Alipay, have been banned in Nepal. The Nepal Rastra Bank, the central bank of the country, decided to ban the use of Chinese digital wallets WeChat Pay and Alipay in the country citing the reason that the country has been losing foreign income due to illegal use of those payment applications.
As those Chinese digital wallets are not registered in Nepal, payments for services acquired in Nepal are made in China. Most of the Chinese tourists and traders used to prefer the WeChat Pay and Alipay to pay the bills in Nepal.
With the use of the illegal digital wallets, foreign income made from the Chinese tourists and business persons could not enter in Nepal’s banking channel enabling the Chinese tourists and businesspersons to repatriate earnings without paying any taxes in Nepal.
Lately, Nepal has been becoming a major visiting destination to the Chinese tourists. According to the statistics, Nepal had received 153,602 Chinese tourists in 2018, which is up 46.8 per cent compared to 2017.
Likewise, many Chinese nationals have also been operating their trading and hotels related business in Nepal. With the ban on the use of Chinese digital wallets, WeChat Pay and Alipay, the Chinese tourists and business persons would not face any difficulties to visit or operate business in Nepal.