Nepal Investment Bank UnionPay Card Launched Amid Controversy

11th January 2026, Kathmandu

Nepal Investment Bank UnionPay card has been officially launched, marking a shift from the locally developed Nepal Pay system. The move comes as Nepal Investment Mega Bank (NIMB) adopts China’s UnionPay card for its customers, moving away from the Nepal Clearing House Limited (NCHL) introduced “Nepal Pay” card. The bank officially unveiled the NIMB UnionPay Card on Friday, Poush 25, 2082 (January 9, 2026), through a formal announcement in Kathmandu.

Nepal Investment Bank UnionPay

The decision has drawn attention and criticism within the financial community due to Nepal Investment Mega Bank’s track record regarding shareholder returns and the perceived preference for foreign payment solutions over domestic alternatives. Critics point out that while the bank is investing in foreign partnerships, it has not distributed dividends to its shareholders over the past three fiscal years, raising questions about its financial priorities and institutional management.

Shift from Nepal Pay to UnionPay

Nepal Investment Bank UnionPay card replaces the Nepal Pay system, which was developed collaboratively by the central bank (Nepal Rastra Bank), commercial banks, and other financial institutions to promote a self-reliant domestic payment ecosystem. The bank claims the transition aims to expand modern payment services, simplify transactions, and provide convenience for international travel.

UnionPay is a global card scheme based in China and is widely accepted by millions of merchants, ATMs, and online platforms in over 180 countries. The adoption of this card is expected to enable easier cross-border transactions, particularly benefiting customers engaged in international commerce, online shopping, and travel within the Asian region and beyond. However, the abandonment of the “Nepal Pay” network, which NIMB had joined just months prior in July 2025, has sparked debate regarding the bank’s commitment to national infrastructure.

Economic and Financial Implications

Nepal Investment Bank, known for high expenditures among bank executives, has attracted scrutiny over the adoption of a foreign payment system. Financial analysts note that the reliance on foreign cards, including Visa, MasterCard, and now UnionPay, contributes to a significant annual outflow of capital from Nepal’s economy. It is estimated that foreign card schemes lead to an outflow of over NPR 6 billion annually in fees and processing charges.

This shift raises questions about why the bank is prioritizing foreign payment systems over domestic solutions, especially when local infrastructure like Nepal Pay was specifically designed to ensure data localization, reduce transaction costs, and minimize foreign currency drainage. The lack of dividend payouts for the fiscal years 2079/80, 2080/81, and 2081/82 further intensifies the criticism from the investor community, who see these foreign investments as potentially secondary to shareholder interests.

Features of the NIMB UnionPay Card

According to the bank, the Nepal Investment Mega Bank UnionPay card is equipped with advanced security technologies, including EMV chip-based security, designed to protect card-based transactions against skimming and fraud. The card is promoted for both domestic and international users, offering secure and efficient payment processing for:

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Physical Point-of-Sale (POS) purchases at retail outlets.

Cash withdrawals from millions of ATMs globally.

Secure e-commerce transactions on international websites.

To encourage adoption and mitigate the initial impact of the transition, the bank has announced a 100 percent fee waiver on all types of NIMB UnionPay cards—both domestic and international—for the first five years. This incentive is intended to attract customers to the new platform while the bank modernizes its broader digital payment infrastructure.

Strategic Goals and Market Perspective

Nepal Investment Bank states that the launch of UnionPay cards aligns with its broader objective to expand digital payment infrastructure and services to meet global standards. By providing an internationally accepted card, the bank aims to meet the growing customer demand for convenience and global usability, particularly for the younger, tech-savvy demographic and international travelers.

The move is part of the bank’s broader strategy to remain competitive in Nepal’s financial sector following its merger with Mega Bank. However, the reliance on foreign platforms continues to fuel a nationwide debate over financial self-reliance and the necessity of domestic innovation. Stakeholders are concerned that marginalizing local schemes like Nepal Pay could weaken the country’s long-term digital sovereignty.

Conclusion

Nepal Investment Bank UnionPay card represents a significant development in the country’s banking sector, offering advanced payment solutions and international usability. While the bank highlights the benefits of improved convenience, enhanced security, and modernized services, serious concerns remain regarding the economic impact of adopting foreign systems over domestic alternatives. As NIMB rolls out these cards throughout early 2026, the market will closely monitor adoption rates and the bank’s future financial performance.

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