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The Role of Authorised Payment Institutions (APIs) in Providing Secure International Money Transfers to Nepal

26 Jul 2023

If it were not for the Authorised Payment Institutions (APIs), the margin for safety in online money transfers would have been lower than it is now.

It can be safely assumed that a major shift from illegal methods of transferring funds from one country to another to legal ways owes itself to the advent of APIs in recent years. It has benefitted the migrants from developing countries, including Nepal, in unprecedented ways. Pressed by their financial needs, Nepali migrants travel to developed countries to earn a living, and they send money to Nepal from overseas to support their families financially.

According to MIDEQ’s Nepal brief, about 3.5 million Nepalese live abroad for work, education and other reasons. They make up around 14% of the country’s total population. These Nepali migrants sent $8.23 billion in inward remittances to the country in 2021, according to a World Bank report.

Since these migrants are pressed by the flailing economy of the country and face acute financial miseries, they make sure that they send money back home in safe and secure ways. Because of the rising incidence of online financial fraud, it becomes essential for you to ensure the safety of your funds while moving them from one place to another, and that too, digitally.

Here is where you feel the need for an API.

Because an API offers you the safety of your funds with other benefits that are unique only to the APIs and are nonexistent elsewhere. 

Let’s delve deeper into it together to understand APIs and find out more.


What Is An Authorised Payment Institution (API)?

An API is a designation by license across Europe or another region that allows a company or an institution to offer payment service within a specific region and under certain rules and regulations.

Any company acquiring this license can offer any financial services, including payment accounts, merchant services, processing payments, and payment transfers.

API licenses are issued by the regulatory authority of the concerned country.

For example, if a company wants to apply for an API license in the UK, it will have to apply to the Financial Conduct Authority (FCA).

In the European Union (EU), however, the companies seeking API status will have to apply to the European Banking Authority (EBA).

The presence of these regulatory bodies increases transparency and offers enhanced safety in your money transfer to Nepal.


Basic Distinction Between Banks And APIs

From the outset, both banks and APIs offer almost identical financial services, but while banks accept deposits, APIs strictly offer payment services.

Let’s now look at a few reasons that push Nepalese out of their country to seek better employment opportunities in other countries. An analysis of these reasons will help you better understand the role of APIs in ensuring the safety of your hard-earned money.

Why Do Nepalese Travel Abroad?

Primarily, they leave the country to seek better employment opportunities to support their families back home.

In this context, the following statistics, sourced from Nepal’s first online news portal, Nepal News, are of importance.

  • In 2019, around 5.5 million Nepali youth applied to seek permission for authorisation letters for employment abroad.
  • According to the Nepal Labour Department, the number of approved applicants for men was 155,242 and 11,456 for women between July 2020 to July 2021.
  • Nepalese say that they wish to leave the country because the quality of education is low and that it does not offer a sound career option even though they acquired the said education.

The Nepalese Economy

  • The World Bank said that in 2021, Nepal had a nominal GDP of $36.29 billion.
  • In the same year, the World Bank noted in another report that the country’s GDP per capita income was $1,208.2.

All of these reasons put together push Nepalese out of their county to seek better opportunities for which it is essential to travel to Countries That Pay The Most To Expatriate Workers, regardless of their countries of origin.

How much importance you should attach to the safety of your funds in your online money transfer to Nepal can be ascertained from the following few scam statistics.

Scam Statistics You Need To Know

  • Federal Trade Commission of America (FTC) said in 2022 that people lost about $1.3 billion to romance frauds during the last 5 years.
  • A report by CNBC said that consumers lost $5.8 billion to many different frauds in 2021, with an increase of 70% from 2020.

These scams may not concern you directly, but this is where the need for APIs becomes all the more pressing. Let’s find out together how.


Safety APIs Offer In International Money Transfers

Sending money to your native country from overseas with an API becomes safe in the following few ways.


Registering Of Complaints

In case something goes wrong while sending money abroad through an API, and you can expect anything in the process, you can register your complaints with the concerned quarters. They, after ascertaining the facts, can take appropriate action.

Seeking Compensation

In case of losing your money after you have initiated a transfer with an API, you can seek compensation for the amount. These APIs will offer you compensation, at least partially, if not in full.

Government Regulation

Since these APIs are regulated by the governments, they have to offer transparency in their operations. As a customer, you can ask any question about anything regarding their operations, for example, their fee structure, how they charge fees and what regulates their currency exchange rates, etc. These APIs are bound to answer your questions and allay concerns.

No Legal Complexities

Since these APIs operate within the legal bounds of their respective regulatory bodies and governments, they keep you away from the legal complexities. In case of a legal complication, these APIs ensure to solve these at their end instead of involving you. It is in stark contrast to the illegal means of transferring funds, in which you alone have to face legal complications.

This is how APIs offer you safe global money transfers.


The Way Forward

If you choose to send money to Nepal online with ACE Money Transfer which is one of the globally renowned APIs, you will enjoy several benefits like speed, wider access, low fees, market-competitive exchange rates, and much that will outweigh your safety-alone concerns.


What is an Authorised Payment Institution (API)?

An Authorised Payment Institution (API) is a firm that is granted permission by a relevant regulatory body (such as the Financial Conduct Authority in the UK) to provide payment services. These services include transactions like deposit and withdrawal operations, money remittances, execution of payment transactions, and issuance of payment instruments.

How do APIs enhance the security of international money transfers to Nepal?

APIs enhance the security of international money transfers to Nepal in several ways. They use advanced technology to encrypt transactions, ensuring that the details of the sender and recipient remain confidential. They also operate under strict regulatory supervision, which mandates them to follow a specific set of rules and security standards. Additionally, in the event of any irregularities or disputes, there are clear, structured channels for resolution due to the regulated nature of these institutions.

How does the use of an API affect the speed of money transfers?

The use of an API can significantly improve the speed of money transfers. APIs leverage technology to streamline the process of money transfers, reducing the time it takes for the money to reach its destination. While traditional banks might take several days to process an international money transfer, APIs can often complete the same transaction within a day or even a few minutes, depending on the specific service.

Are there any limits to how much money I can send to Nepal using an API?

The limits on money transfers using an API depend on the specific institution and its policies. Most APIs will have both minimum and maximum transfer limits, which can also vary depending on the user's verification level. It's always best to check the specific limits and requirements of the API you plan to use for your international money transfers.

What information do I need to provide to an API for a money transfer to Nepal?

To make a transfer to Nepal via an API, you typically need to provide your personal information (such as your full name and address), your recipient's information (their full name, address, and sometimes a contact number), and your recipient's bank details. This usually includes the bank's name and address, the account number, and the bank's SWIFT/BIC or IBAN code. The exact information required may vary depending on the API's policies and local regulations.


  • Nepalese diaspora

(MIDEQ - Migration for development and equality)

  • Inward remittances

(Personal remittances, received (current US$) - Nepal | Data (

  • Exodus of Nepalese

(Why young people want to leave Nepal? | Nepalnews)

  • Nepali GDP

(GDP (current US$) - Nepal | Data (

  • Nepali GDP per capita

(GDP per capita (current US$) - Nepal | Data (

  • USA’s FTC report

(Reports of romance scams hit record highs in 2021 | Federal Trade Commission (

  • CNBC report

(Consumers lost $5.8 billion to fraud last year — up 70% over 2020 (


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