In an age where prices are skyrocketing at the speed of light, and the need to carry extra cash is perpetual, is it any wonder that credit and debit cards have taken over the world? Even in Nepal, with the advancement in technology.  The use of credit and debit cards has been picking up steam.

If you were thinking of taking a crash course on credit/debit cards, here’s a two-line summary: a debit card serves the concept of buy now, pay now, whereas a credit card caters to the buy now, pay later scheme. As juicy as that might sound, there are basic perquisites you need to fulfill to obtain a credit card, and consequences you need to face for not using it well. The main perquisite being a steady income, and usual consequence is having to pay exorbitant interest along with the seed money when you fail to pay the due amount on time.

Mr. Prakash Poudel, head of the Card and E-Banking Department at Sunrise Bank, New Road, says this about credit/debit card use in Nepal: “These days everyone has debit cards, and it’s a matter of convenience. But in Nepal, credit cards are more than just a handy tool for emergency cash. It’s a matter of a sophistication and societal standing. Anyone with a credit card has a steady income.”

Although packed with pros, the concept of cards isn’t without some cons, especially in Kathmandu’s context. The network problems are sometimes a nuisance, but beyond that, even technology seems unable to escape the famous Kathmandu dust, as evidenced by the fact that the ATM sensors are frequently damaged by dust. The dust even manages to get on the currency notes, which makes them unusable for ATM transaction.

Despite the technical issues, Mr. Poudel is quite optimistic about the future of credit and debit cards in Nepal.  He adds, “When your income is limited but your desires aren’t, credit cards act as saviors.” In the future, as is quite predictable, there will be further advancements in both the people’s understanding of credit and debit cards, and the features offered through e-banking.

With a rapidly growing user base and demand, the advancement of credit/debit cards to the point of dominantly substituting cash isn’t a farfetched dream in Nepal.