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What is ConnectIPS? Nepal's Bank Transfer Payment System Explained

A complete guide to ConnectIPS - what it is, how it works, transaction limits, and how to accept ConnectIPS payments on your website.

March 28, 20263 min readPayBridgeNP Team
What is ConnectIPS? Nepal's Bank Transfer Payment System Explained

If you've looked into accepting online payments in Nepal, you've probably come across ConnectIPS. It's different from Khalti and eSewa - and for many types of transactions, it's actually better. Here's everything you need to know.

What is ConnectIPS?

ConnectIPS (Connect Interbank Payment System) is an online payment platform operated by Nepal Clearing House Ltd (NCHL), a company owned by Nepal's major banks and Nepal Rastra Bank (the central bank).

Unlike Khalti and eSewa, which are private wallet companies, ConnectIPS is part of the banking infrastructure. This matters for:

  • Trust: Backed by the banks and the central bank
  • Limits: Higher transaction limits than wallets
  • Coverage: Works with almost every Nepali bank account

How ConnectIPS Works

ConnectIPS enables direct bank-to-bank transfers over the internet. Here's the flow:

  1. Customer selects ConnectIPS at checkout
  2. They enter their bank, account number, and password
  3. ConnectIPS debits their bank account directly
  4. Your bank account is credited
  5. Settlement typically happens within 1-2 business days

No wallet balance needed. No top-up required. Just direct bank access.

ConnectIPS vs Khalti/eSewa

FeatureConnectIPSKhalti / eSewa
Requires walletNoYes
Bank account requiredYesLinked but not required
Transaction limitUp to NPR 10 lakh/dayTypically NPR 50K-1L/day
Best forLarge amounts, B2BSmall/everyday purchases
Speed1-2 business daysNear-instant
UXMore stepsSimpler, familiar

When to Prefer ConnectIPS

High-value transactions: If your average transaction is above NPR 20,000-50,000, ConnectIPS is often preferred by customers because wallet limits can restrict the purchase.

B2B payments: Businesses paying other businesses often prefer bank transfers - ConnectIPS is the digital version of a cheque.

Customers who don't use wallets: A significant portion of Nepal's population has a bank account but doesn't actively use Khalti or eSewa. ConnectIPS captures this segment.

Recurring invoices: For monthly subscription payments or service invoices, ConnectIPS provides a bank-transfer alternative.

Accepting ConnectIPS on Your Website

You have two options:

Option 1: Direct Integration with NCHL

Apply directly to NCHL for a merchant account. This is a multi-step process:

  • Submit application to your bank
  • Bank forwards to NCHL
  • NCHL review and approval
  • API access granted

Timeline: 2-6 weeks depending on your bank.

Option 2: Via PayBridgeNP

PayBridgeNP includes ConnectIPS support out of the box. Add it alongside Khalti and eSewa without a separate NCHL merchant account:

const session = await paybridge.checkout.create({
  amount: 500000, // NPR 5,000
  currency: "NPR",
  providers: ["khalti", "esewa", "connectips"], // show all three
  customer: { name: "...", email: "..." },
});

When customers select ConnectIPS at checkout, PayBridgeNP handles the NCHL connection and notifies you via webhook when the transfer settles.

ConnectIPS Transaction Limits

Limits vary by bank but typical retail limits are:

  • Per transaction: Up to NPR 2,00,000
  • Per day: Up to NPR 10,00,000

These limits are significantly higher than wallet-based providers, making ConnectIPS the right choice for high-value goods and services.

Fees

ConnectIPS charges are typically around NPR 5-20 per transaction (flat fee, not percentage). This makes it very cost-effective for large transactions compared to percentage-based wallet fees.

Should You Add ConnectIPS to Your Checkout?

Yes, if:

  • Your average order value is above NPR 10,000
  • You sell to businesses or professionals
  • You sell insurance, real estate, vehicles, or high-value goods
  • You want maximum payment coverage

It's optional if:

  • You only sell low-cost items (under NPR 500)
  • Your customers are all young wallet-heavy users

For most serious Nepali e-commerce businesses, ConnectIPS alongside Khalti and eSewa gives you complete market coverage. See the full guide on how to accept online payments in Nepal. PayBridgeNP makes it easy to add all three.


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