Flood-hit Nepal's digital shift in philanthropy

Donating to government relief funds in Nepal has traditionally required carrying cash, visiting a bank and waiting in line. However, a shift has occurred as mobile banking and digital payments have become more widespread. Musician Bobby Lama, a member of the band Mongolian Heart, experienced this change firsthand during Nepal's 2015 earthquake and COVID-19 pandemic.

When devastating floods struck in August 2023, Lama scanned a QR code and seamlessly transferred money to the Prime Minister's Disaster Relief Fund using mobile banking, avoiding the inconvenience of traditional banking methods.

This digital transformation in philanthropy represents a broader change in Nepal's disaster response efforts. The rapidly growing digital payments infrastructure connects ordinary citizens, businesses, and overseas donors directly with the government relief fund. By the 11th day after the August 26 Bhotekoshi floods, over NPR 10 billion had been collected in the relief fund, reflecting the efficiency of this new approach. Contributions ranged from schoolchildren to global tech companies like Nvidia.

Finance Minister Swarnim Wagle attributed the ease of digital donations to the country's advancements in digital payments and technology. For donors abroad, Nepal arranged direct payments using dollar-denominated cards like Visa and Mastercard, eliminating the need for bank visits or complex international transfers. Fonepay, a digital payments company, processed 8,15,219 domestic QR payments, contributing NPR 2.095 billion to the relief fund. Meanwhile, Nepal Clearing House Ltd processed 2,46,614 transactions, adding NPR 390.5 million.

Nepal's electronic payment systems are also linked to international networks, allowing Nepalis living abroad and global donors to contribute without traditional bank transfers. In just 93,850 transactions using international cards, NPR 1.4 billion has been deposited directly into the relief fund. Dutch payment systems like UPI and Alipay have also played a significant role, with UPI contributing NPR 4.854 crore and Alipay adding NPR 1.797 crore.

Nepal's software and information technology (IT) companies have joined the effort, providing financial assistance and relief materials. Organizations like NAS-IT and the Computer Association Nepal (CAN) Federation are leveraging technology alongside monetary support for relief and reconstruction efforts. Cedar Gate, an IT company, donated relief materials worth NPR 130,000, while F1 Soft Group contributed NPR 13.5 million to the Prime Minister's Disaster Relief Fund.