IME Pay, Khalti merge to form Nepal’s largest digital wallet

KATHMANDU: IME Pay and Khalti wallet merged and began integrated operations under the name ‘Khalti by IME’ from Thursday.

At a special ceremony in Kathmandu on Thursday, Nepal Rastra Bank (NRB) Deputy Governor Bam Bahadur Mishra formally granted an operating licence to the merged entity, ‘IME Khalti’, making the merger official. Mr Mishra said he was confident the merger would further accelerate the digitisation of the payment system.

On the occasion, Chandra Prasad Dhakal, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and co-founder and chairman of IME Group, said IME Group had “always been at the forefront of supporting NRB’s merger-encouragement policy for the development of robust and dynamic financial institutions and systems”. He added that the merger would significantly aid the government’s vision for a digital Nepal.

Hem Raj Dhakal, co-founder and managing director of IME Group, emphasised that “the transformation of the entire payment-system ecosystem is crucial for the digital transformation of the economy”. He reaffirmed the group’s commitment to further development and expressed hope for more support and cooperation from NRB.

The new combined app connects 12.7 million users for transactions, and IME Khalti has a paid-up capital of over Rs 540 million. In terms of both users and capital, ‘Khalti by IME’ is now the country’s largest digital wallet, adding a new dimension to the Nepali digital economy.

Before the merger, IME Pay and Khalti had each provided digital-payment services for nearly a decade. IME Pay, the only wallet to offer interest, was popular for remittance and inDriver payments, while Khalti, favoured by younger users, was known for cinema booking, event ticketing and its innovative features.

Existing IME Pay users can migrate to ‘Khalti by IME’, transferring funds, interest, reward points and all wallet details to the new app. Khalti users can update their app to access the integrated services.

IME Pay was operated by IME Group. Khalti, founded by four co-founders, later received investment from WorldLink and the Triveni Group.

Krishna Prasad Sharma, chairman of IME Digital Solutions, said he was confident the merged company would “elevate the potential of digital Nepal to new heights”.

Manoj Kumar Agrawal, chairman of Khalti, described the merger as a “historic step for the long-term prosperity of the Nepali digital-financial sector” that would usher in “a new era of financial access” across the country.

Binay Khadka, chief executive officer of IME Khalti, said plans were in place to expand digital access, literacy and inclusion.

IME Pay has won the Digital Services ICT Award 2024, the HRM Award for Corporate Excellence in the fintech category 2023, and the Excellence in Fintech Partnership Award at the Visa Leadership Conclave Nepal 2023.

Khalti has been recognised at the WITSA Global Innovation & Tech Excellence Awards in 2022, 2023 and 2024; as the service provider with the highest digital-payment transactions in the country for two consecutive years by NCHL; and for its significant contribution to digital transactions by NRB.