In Nepal’s growing online retail market, understanding customer payment preferences is essential for retailers to meet expectations. While cash-on-delivery remains dominant, there is a notable shift towards digital payment methods as technology advances. In this blog, we’ll explore the key payment preferences among Nepali customers and how retailers can cater to these evolving trends.

1. Cash-on-Delivery (COD) Still Reigns
Despite the rise in digital payments, cash-on-delivery remains the most preferred payment method in Nepal. Many customers, particularly in rural areas, still rely on COD as it feels more tangible and secure. Retailers should continue to offer this option while also encouraging the use of digital payments through promotions and discounts.

2. The Rise of Digital Wallets
With the increasing popularity of digital wallets like eSewa, Khalti, and IME Pay, more Nepali customers are becoming comfortable with online payments. Retailers who integrate these options into their checkout process provide convenience, especially for customers who are already using these services for other transactions like utility payments and mobile recharges.

3. Incentivizing Online Payments
One way to encourage more Nepali customers to shift towards digital payments is through incentives. Offering discounts, cashback, or loyalty points for payments made via digital wallets or bank cards can motivate customers to adopt these methods. Additionally, this helps reduce cash handling for retailers, improving operational efficiency.

Understanding these payment preferences allows retailers to offer multiple options, making the transaction experience smoother and more inclusive for customers across different regions of Nepal.

Source: Research Project