Fonepay, Nepal’s largest interoperable payment network, has unveiled its first virtual credit card, marking a significant milestone in its mission to establish itself as a fully-fledged locally operated payment network in the country. Developed in collaboration with Compass Plus Technologies and its award-winning payments platform, TranzAxis, the innovative service is designed to provide a secure, flexible, and cost-effective digital credit solution for Nepal’s financial institutions (FIs), offering a strong local alternative to those offered by international card networks.

The virtual credit card, which can be issued instantaneously via the mobile banking apps of Fonepay's partner FIs and is accepted at over 1.5 million merchants, provides customers with a seamless and secure digital payment experience. Fonepay processes transactions made with the card through its ‘Fonepay’ mobile payment scheme. Two major local banks have already adopted the service, with a third set to join soon.

The successful launch of the virtual credit card follows Fonepay’s receipt of a domestic credit card scheme license from Nepal Rastra Bank, the central bank of Nepal. The project, which had a strict timeline, was delivered on time thanks to the expertise and collaboration between Fonepay, Compass Plus Technologies, and local partner Pregasus, all working in alignment with the central bank’s regulatory framework.

Paras Kunwar, Chief Operating Officer at Fonepay, shared, “This launch marks a transformative step forward in Nepal’s financial ecosystem. With the support of Compass Plus Technologies, we have introduced a disruptive credit card offering to Nepalese customers powered by a domestic mobile payment scheme that not only meets the needs of our financial partners but will also empower millions of customers with a new, digital-first payment option. We are excited to see the positive impact this product will have on the market and look forward to expanding our offerings.”

“We are proud to partner with Fonepay on this groundbreaking project. Bringing a new card product like this and establishing a new card network to market is no small feat, especially in a complex and dynamic environment like Nepal,” said Nayan Raut, AVP and Regional Business Development Director at Compass Plus Technologies. “The close collaboration between us and Fonepay, combined with the strength of TranzAxis, enabled Fonepay to go live within a demanding timeline and in full compliance with local regulations. We are thrilled to see this project come to fruition and look forward to supporting Fonepay as they expand their portfolio.”

Building on the success of the virtual credit card launch, Fonepay is planning to roll out additional services utilising Compass Plus Technologies software, including physical card products and third-party processing services for international card networks. These new services will further enhance its offering, positioning Fonepay as a strong domestic operator and international player for cross-border payment integration.