Nepal, April 6 -- Digital payments are transforming Nepal as the country experiences a significant shift in its financial landscape. Electronic payment methods are on the rise-whether for big purchases or a cup of tea. This is evident from the QR codes seen almost everywhere, from fancy malls to street-side stalls. The shift from a cash-based to a cashless economy is set to redefine GDP numbers over the next 8-10 years.

The Nepali economy has long been crippled by the shadow economy, including tax evasion at various economic forefronts and informal remittance channels. Based on a 2018 study by Medina and Schneider, on average, the shadow economy made up 30.22 percent of the total Nepali economy in 2015. Cash transactions dominate consume...