Fonepay launches Nepal’s first virtual credit card with Compass Plus Technologies

By Gloria Methri

Fonepay, Nepal’s interoperable payment network, has unveiled its first virtual credit card in collaboration with Compass Plus Technologies and its payments platform, TranzAxis. This 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 provided by international card networks.

The virtual credit card can be issued instantaneously via the mobile banking apps of Fonepay’s partner FIs and is accepted by over 1.5 million merchants. It 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.

Paras Kunwar, Chief Operating Officer at Fonepay, shared, “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.”

“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.”

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.