Compare connectIPS vs Fonepay in Nepal. Learn about transaction limits, fees, and which platform is better for your daily digital payments.
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This guide explains their differences, merchant adoption, and which one you should use for your specific needs.
What is Fonepay?
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Important distinction: Many people download the "Fonepay" app from the Play Store, but this app is primarily designed for merchants to manage their transactions and settlements. For regular consumers, Fonepay isn't a standalone wallet like eSewa; instead, it is a network built into your existing bank app.
Important distinction: Many people download the "Fonepay" app from the Play Store, but this app is primarily designed for merchants to manage their transactions and settlements. For regular consumers, Fonepay isn't a standalone wallet like eSewa; instead, it is a network built into your existing bank app.
- Primary Use: Daily retail purchases (groceries, restaurants, movies etc).
- Consumer Interface: Accessed directly through mobile banking apps (Nabil, NIC Asia, etc.) or wallets (eSewa, Khalti).
- Payment Method: Scanning a Fonepay QR code or using "Fonepay Direct" (sending money via a mobile number).
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What is connectIPS?
- Primary Use: High-value transfers, government revenue payments (taxes, fines), and formal bills.8
- Consumer Interface: A standalone connectIPS app and a web portal.
- Payment Method: Direct bank-to-bank transfers without needing to "load" a wallet. It supports QR via NepalPay QR, though it is currently less common in small shops compared to Fonepay.
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Key Differences: Feature Comparison
| Feature | Fonepay | connectIPS |
|---|---|---|
| Type | Interoperable Payment Network | Bank-to-Bank Payment Platform |
| Consumer App | Use your Bank App (Fonepay app is for merchants) | Standalone connectIPS App or Web |
| Wallet Requirement | Not needed if using a Bank App | Not needed (Direct Bank Link) |
| QR System | Fonepay QR (Widely accepted) | NepalPay QR (Limited adoption) |
| Transaction Source | Bank Account or Wallet Balance | Direct Bank Account |
| Best For | Everyday shopping & P2P transfers | Govt. taxes, bills, & large transfers |
Transaction Limits and Charges
The cost of using these services is a major factor for many users.- Fonepay: Sending money to a friend via Fonepay Direct typically costs a flat fee of Rs. 10. However, scanning a QR code at a shop to pay for goods is usually free for you.
- connectIPS: Known for the lowest fees in Nepal. Charges are slab-based, ranging from Rs. 2 to Rs. 8. This makes it the cheapest way to send large amounts of money.
Merchant Adoption: Where can you pay?
- Fonepay: This has massive adoption. From the smallest tea shop to large supermarkets, you will find a Fonepay QR code almost everywhere in Nepal.
- connectIPS: While growing, it is mostly used for formal sectors. It is the primary choice for paying Stock Broker (TMS) fees, Public Service Commission (Loksewa) fees, and Passport/Tax payments.
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Can You Link Your Bank on Fonepay?
Yes, but the way it works is different from connectIPS. When you use Fonepay through your bank app, your account is already linked. You are paying directly from your bank. However, if you use Fonepay through a wallet like eSewa, the money is deducted from your wallet balance, not your bank.Conclusion: Which Should You Use?
For the best experience, most users in Nepal keep both options available:- Use Fonepay (via your bank app) for daily retail shopping and quick QR scans at local stores.
- Use connectIPS for paying government taxes, school fees, electricity bills, and large bank transfers to save on service charges.
Frequently Asked Questions (FAQ)
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- Can I scan a Fonepay QR code using the connectIPS app?
- No. As of now, Fonepay and connectIPS (NepalPay QR) are not fully interoperable. You must use a mobile banking app or a supported wallet to scan Fonepay QRs, and the connectIPS app for NepalPay QRs.
- Which is safer, connectIPS or Fonepay?
- Both are highly secure. Fonepay uses bank-grade encryption within your mobile banking app. connectIPS is regulated directly by Nepal Rastra Bank and uses multi-factor authentication (OTP and transaction passwords), making it very reliable for large transfers.
- Is the Fonepay app required for customers?
- No. Regular customers do not need the standalone Fonepay app. You can find all Fonepay features inside your existing mobile banking app (like Nabil SmartBank or Global Smart Plus). The Fonepay app is mainly for merchants to track payments.
- Why should I use connectIPS for government payments?
- connectIPS is the official channel for government revenue in Nepal. It allows you to pay taxes, traffic fines, and Loksewa fees directly from your bank account with a verified digital receipt, which is often required for official records.
- Which has lower transaction fees?
- connectIPS is cheaper for fund transfers. While Fonepay often charges a flat Rs. 10 for interbank transfers, connectIPS fees range from Rs. 2 to Rs. 8 depending on the amount. However, both are usually free for merchant QR payments.Both systems are essential for a modern, cashless life in Nepal, serving different but equally important roles in the financial ecosystem.
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