Siddhartha Bank Plays Leading Role in Nepal’s Digital Payment Growth

7th November 2025, Kathmandu

The financial landscape of Nepal is undergoing a dramatic digital transformation, a shift fueled by growing internet access and a national push for a cashless economy.

SBL’s Role in Digital Payment Growth

Amidst this rapid evolution, Siddhartha Bank Limited (SBL) has distinguished itself not just as a participant but as a genuine pioneer and market efficiency leader.

By consistently delivering high transaction volume from a focused infrastructure and investing heavily in cutting-edge customer technology, Siddhartha Bank is setting a benchmark for digital banking excellence in the Himalayan nation.

This article delves into the specific achievements and strategic investments that underscore Siddhartha Bank’s dominance in key digital metrics, showcasing its commitment to a user-friendly, secure, and future-forward banking experience.

High-Impact Performance in ATM and Mobile Banking

Siddhartha Bank’s success is defined by its ability to generate high utility from a relatively smaller physical and digital footprint, a testament to its operational efficiency and strategic placement of resources.

The ATM Efficiency Advantage
While Nepal currently has over 5,200 ATMs nationally, Siddhartha Bank operates a modest number, accounting for approximately 4% of the total ATM units.

However, this focused network is managed with exceptional precision, enabling the bank to capture a disproportionately high 7% of the total national ATM transaction volume. This impressive efficiency translated to a staggering NPR 73.51 billion in transactions in the last fiscal year alone.

This critical metric highlights SBL’s ability to maximize the utility of its technology, ensuring high availability and seamless transactions for its customer base through robust monitoring and a superior management system.

Mobile Banking Mastery with BankSmart XP

The rise of mobile banking has been the single most significant factor in Nepal’s digital surge, with the country boasting nearly 28 million users.

Siddhartha Bank has captured a sizable piece of this market, serving 1.159 million mobile banking users, representing a 4% market share of the total user base. Crucially, the bank’s users are highly engaged: SBL accounts for a substantial 7% of the total national mobile banking transaction volume, totaling an impressive NPR 342 billion.

The backbone of this success is the bank’s award-winning mobile application, BankSmart XP. Achieving an outstanding rating of 4.6 stars on both the Play Store and the App Store, BankSmart XP is recognized for its seamless functionality, comprehensive features, and user-centric design, allowing it to rank as the #1 mobile banking app among the 20 commercial banks in Nepal.

This top rating reflects SBL’s dedication to providing a convenient, reliable, and secure platform for banking on the go, solidifying its position as a digital-first institution.

Dominance Across Card Segments

Siddhartha Bank’s leadership extends across all major card products, demonstrating its versatile capacity to capture value from diverse payment channels.

Strong Market Presence in Debit and Prepaid Cards

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With 918,000 debit cards issued, Siddhartha Bank holds a solid 7% market share in this segment, recording NPR 74.89 billion in transaction value.

Furthermore, in the growing prepaid card segment essential for online services and international transactions, Siddhartha Bank has a notable presence. Out of the 250,000 prepaid cards nationwide, SBL has issued 34,224 units, securing a 14% market share and contributing 8.5% of the total prepaid card transaction value. The bank’s commitment to constant monitoring and feature updates ensures its prepaid card users benefit from high reliability and an effortlessly user-friendly service.

The Credit Card Market Powerhouse

In the credit card sector, Siddhartha Bank is an undeniable market powerhouse. It has an active base of 60,000 credit cards in circulation, which represents a massive 19% market share, nearly one-fifth of the entire national credit card market.

The bank drives high engagement with its credit card users, generating NPR 3.6 billion in transactions. The popular Siddhartha Rewards Platform acts as a key differentiator, allowing users to earn redeemable points on every purchase for discounts across a wide network of partner brands, effectively boosting card usage and customer loyalty.

Innovating for the Future: New Digital Services and Growth Trajectory

Siddhartha Bank recognizes that leadership in the digital space demands continuous innovation. The bank is proactively rolling out next-generation services designed to meet evolving consumer needs and propel the sector forward.

The recent launch of the Virtual E-commerce Card through its mobile banking app provides customers with a secure and seamless way to execute international payments.

This feature directly addresses the market demand for easier access to global e-commerce. Looking ahead, SBL is pioneering the launch of the Siddhartha PhonePay Credit Card, which promises to integrate the convenience of instant QR-based payments directly with a credit line, a service that will further enhance transactional speed and convenience for both consumers and merchants.

The bank’s strategic focus on digital growth is clearly reflected in its performance across the last fiscal year:

Debit Cards grew by +14%

Credit Cards saw a robust increase of +19%

Prepaid Cards achieved a significant growth of +36%

Mobile Banking expanded by +15%

These strong growth indicators underscore a successful and comprehensive digital strategy. By consistently investing in user-friendly, secure, and innovative solutions, and pairing them with regular customer awareness and training programs, Siddhartha Bank is not just participating in Nepal’s digital shift; it is strategically accelerating the growth of the nation’s entire digital payment ecosystem, cementing its role as a visionary financial leader.

For More: SBL’s Role in Digital Payment Growth